Tata Power and ICICI Ventures backed Resurgent Power today said it has acquired 75.01 per cent stake in Jaiprakash Associates' 1980-Mw Bara plant, becoming the first of the stressed power plants to have been resolved by lenders outside insolvency court.
Lender to Prayagraj Power Generation Company Limited (PPGCL), a 3X660MW coal-based power project based in UP, have issued a Letter of Intent to Resurgent Power Ventures Pte Ltd for acquisition of 75.01 per cent stake in PPGCL, an official statement said.
The estimated deal value is about Rs 6,000 crore, while the debt stands at around Rs 12,000 crore. State Bank of India (SBI) is the lead banker to this project and the lenders are expected to have taken a 50 per cent haircut. This project was part of the 11 plants identified for expedited resolution under Samadhan scheme.
Resurgent Power is a Joint Venture based out of Singapore and is held 26 per cent by Tata Power through its wholly-owned Singapore based subsidiary. The balance 74 per cent of Resurgent Power is held by ICICI Bank and global investors, the official statement said.
Praveer Sinha, Chief Executive (CEO) and Managing Director of Tata Power said “It’s our endeavor to maximize shareholder value through growth & sound investments. After our due diligence, we found that Prayagraj Power fits in our overall scheme of growth. It has all approvals and clearances in place along with long-term PPA and fuel supply agreement. It will be a value-adding asset in Resurgent Power’s portfolio.”
The transaction shall be subject to customary approvals and conditions, the statement said.
