Jaiprakash Power ends over 5 pc up on sale of plant to JSW

Shares of Jaiprakash Power Ventures ended with over 5 per cent gains today after JSW Energy said it will acquire the former's 500 MW thermal plant at Bina in Madhya Pradesh at an enterprise value of Rs 2,700 crore.
After rallying 13.67 per cent to Rs 6.90 in intra-day trade, shares of the company finally ended at Rs 6.40, up 5.44 per cent on BSE.
On NSE, shares of the company rose by 4 per cent to settle at Rs 6.35.
JSW Energy ended 1.43 per cent higher at Rs 81.30 on BSE.
"The company has agreed to acquire the 500 MW (2X250 MW) thermal power plant located at Bina, district Sagar in Madhya Pradesh from Jaiprakash Power Ventures," JSW Energy said in a BSE filing yesterday.

In a separate filing, Jaiprakash Power Ventures had said that its board has accepted the recommendations of the committee of directors as well as the audit committee to hive off and transfer the 500 MW Bina thermal power plant on a going concern basis to its subsidiary Bina Power Supply (BPSL) through the scheme of arrangement approved by the board, subject to all requisite regulatory and other approvals.
It further said the board approved the securities purchase agreement with JSW Energy "regarding the sale of entire securities...Of BPSL...To JSW subject to satisfaction of conditions precedent including the scheme of arrangement becoming effective and all such regulatory and other approvals as may be required."

The consideration to be received from JSW is linked to a base enterprise value as on September 1, 2015 of Rs 2,700 crore for sale of 100 per securities of BPSL subject to mutually agreed adjustments, it said.