New Delhi: State-run Power Grid Corporation of India Limited (PGCIL) has signed a share purchase agreement with Jaiprakash Power Ventures Limited (JPVL) to acquire 74 percent stake in Jaypee Powergrid Limited-JV (JPL), the company said in an official statement on Friday. Prior to signing the agreement, Power Grid held 26 percent equity in the JV. After the acquisition, Jaypee Powergrid Limited-JV (JPL) will become a wholly owned subsidiary of Power Grid.
In a regulatory filing to the stock exchanges, Power Grid said that the stake acquisition in Jaypee Powergrid Limited-JV is valued at over Rs 351 crore. "This is to inform that POWERGRID has signed a Share Purchase Agreement (SPA) with Jaiprakash Power Ventures Limited (JPVL) today for acquisition of 74% stake of JVPL in Jaypee POWERGRID Limited (JPL) at an aggregate consideration of INR 351,64,80,000/- (Rupees Three Hundred Fifty One Crore Sixty Four Lakh Eighty Thousand Only), as 'Closing Date Payment', which shall be subject to adjustment in accordance with Clause No. 5.2 of SPA," said Power Grid.
Jaypee Powergrid Limited-JV has developed a 214-Km-long EHV power transmission project to evacuate power from Karcham-Wangtoo project in the state of Himachal Pradesh. The power transmitted is meant for distribution and consumption in states of Himachal Pradesh, Haryana, Punjab, Uttar Pradesh and Rajasthan.
The proposal for the stake acquisition in the joint venture was approved by the board of Power Grid in a meeting held on February 11 this year.
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