JSW Neo Energy to Acquire O2 Power Midco Holdings & O2 Energy SG for 12,248 Cr.
JSW Neo Energy Ltd., a wholly owned subsidiary of JSW Energy Ltd., will be acquiring 100% of O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd. for about Rs. 12,468 crore. This acquisition also includes respective subsidiaries of these companies.
Companies to be acquired have been collectively referred to as ‘O2 Entities’ in JSW Energy’s stock filing dated 27th December 2024.
Acquisition Expected to Complete in May 2025
JSW Neo Energy is expected to complete the acquisition of O2 Entities by 26th May 2025. JSW Neo Energy has signed ‘definitive agreements’ with O2 Power Pooling Pte. Ltd. and O2 Energy SG and ‘certain individuals’ (collectively the sellers in the transaction) for the same. Once this acquisition is complete, O2 Entities will become subsidiaries of JSW Neo Energy. JSW Neo Energy will be using cash as the mode of payment for this acquisition.
Currently, requisite approvals from Competition Commission of India (CCI) and concerned lenders are awaited.
O2 Power Pooling was established jointly by two investment firms, namely Sweden-based EQT Infrastructure and Singapore’s Temasek.
Move to Add 4.7 GW of Renewable Energy to JSW Neo’s Portfolio
In its release, JSW Energy mentioned that O2 Entities constitute a ‘4.7 GW Renewable Energy Platform’. Their portfolio comprises 4,696 MW of Renewable Energy (RE), out of which 2,259 GW is set to be commissioned by June 2025. Of the remaining 2,437 MW, projects totaling 1,463 MW are currently under construction, whereas 974 MW of RE projects are in the pipeline and are expected to be commissioned by June 2027.
JSW Neo to Gain Solar, Wind, Hybrid & Storage-Backed RE Energy Assets
O2 Entities have substantial solar energy, wind energy, hybrid energy and Firm and Dispatchable RE (FDRE) generation assets. These projects are in various stages of development and are spread across 7 Indian states.
O2’s RE generation assets comprise 1,731 MW of solar power, 1,580 MW of hybrid power, 475 MW of wind power, and 910 MW of Round-The-Clock (RTC) or FDRE.
While commenting on this acquisition, Mr. Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said, “…the acquisition of O2 Power’s 4.7 GW renewable energy platform which is JSW Energy’s largest acquisition since inception”. He added that the acquisition of O2’s assets strengthens JSW Energy’s presence in India.
Deal to Augment JSW’s RE Portfolio by 23%, In-Line with FY-30 Target
Aforementioned acquisition will add 23% to JSW Energy’s RE portfolio, taking it to 24,708 MW from the current 20,012 MW. It must be noted that these figures represent the ‘locked-in’* RE capacity of the company.
Moreover, JSW Energy has a target of reaching 20 GW Renewable Energy generation capacity by FY-30. Therefore, acquisition of O2 Entities is in-line with JSW’s future target. Currently, JSW Energy’s RE generation capacity sits at 7.2 GW.
Mr. Pritesh Vinay, Director (Finance) and CFO of JSW Energy, said, “This gives us an opportunity to leapfrog our growth ambitions. JSW Energy remains focused to pursuing value-accretive opportunities that support our ambitious growth objectives in the power sector”.
*‘Locked-in’ RE capacity includes operational and under-construction projects, as well as RE projects which the company has secured and are in the pipeline.
About JSW Energy Ltd.: JSW Energy Ltd. is headquartered in Mumbai, and engages in generation, transmission, and distribution of power. The company’s generation portfolio comprises thermal, hydro, solar, wind and hybrid power assets. For FY-24, the company reported a revenue of Rs. 11,485.91 crore.
