Competition Commission of India(CCI) vide its order dated July 01,2016 has given its approval to JSW Energy to acquire 1,000 MW power plant in Chhattisgarh from Jindal Steel and Power Ltd (JSPL).The JSPL board had approved divesting the unit of its subsidiary Jindal Power Ltd (JPL) into a special purpose vehicle for transferring it to JSW Energy pursuant to execution of a Securities Purchase Agreement (“SPA”) between JSWEL, Jindal Power Limited “(JPL”), Everbest Steel and Mining Holdings Limited (“SPV”) and Jindal Steel and Power Limited (“JSPL”). The proposed combination relates to transfer of a 1000 MW operational coal fired thermal power plant at Tamnar, Chhattisgarh (“Target Asset”), currently owned by JPL, to SPV on a going concern basis pursuant to a scheme of arrangement amongst JPL, JSPL and the SPV; and subsequent acquisition of 100 per cent stake in the SPV by JSWEL. (Source: CCI order dated July 01, 2016)
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