Resurgent Power has acquired 75% stake in Jaiprakash Associates 1980 MW ( 3 X 660MW ) coal-based power plant in UP from the consortium of lenders led by SBI.. This is the first stressed power plants proposed to be resolved by lenders outside insolvency court.
According to the official statement released, “Renascent Power Ventures Private Limited, a wholly owned subsidiary of Resurgent Power Ventures Pte. Limited has signed a share purchase agreement (SPA) with a consortium of lenders led by State Bank of India (SBI) to acquire 75.01% stake in Prayagraj Power Generation Company Limited (PPGCL), which owns and operates a 1,980 MW supercritical power plant in the state of Uttar Pradesh.
The SPA will be subject to customary approvals from regulatory authorities and the transaction is expected to be closed over the next few months, it added. The statement further added that this transaction is the result of stressed asset resolution process initiated by the lenders through a competitive bidding process. The estimated deal value is about Rs 6000 crore.
“The JV has been evaluating various assets that meets its investment objective and Prayagraj fits into that. Resurgent looks forward to maximizing its potential using the expertise of all the partners” stated Praveer Sinha, CEO and MD, Tata Power and director of Resurgent Power.
Resurgent Power is a joint venture between Tata Power International Pte. Ltd (TPIPL) (a wholly owned subsidiary of Tata Power), ICICI Bank Ltd. (ICICI Bank) and other reputed global investors including Kuwait Investment Authority, State General Reserve Fund, Oman, set up to acquire assets in the Indian Power Sector. TPIPL owns 26% stake in Resurgent Power and the balance 74% is held by ICICI Bank and other global investors. Resurgent Power has submitted its Rs. 6,000 crore bid for Prayagraj Power earlier this year offering a 15 per cent stake to the lenders. The 10 per cent stake would remain with the original promoter, Jaiprakash Associates.