Shares of Jaiprakash Power Ventures surged nearly 14 per cent today as JSW Energy will acquire its 500 MW thermal plant at Bina in Madhya Pradesh at an enterprise value of Rs 2,700 crore.
The stock soared 13.67 per cent to Rs 6.90 on BSE.
At NSE, shares of the company zoomed 13.11 per cent to Rs 6.90.
JSW Energy too went up 2.62 per cent to Rs 82.25 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 of 500 MW Bina thermal power plant as 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.
