Sajjan Jindal-backed JSW Energy on Friday said it has terminated its Rs 5,321 crore deal to acquire GMR Kamalanga Energy due to Covid-19 related uncertainties.
“With elapsing of long stop date, both parties have mutually agreed to terminate the transaction given continued uncertainty due to Covid-19 pandemic,” JSW Energy said in BSE filing on Friday.
In May, the sale of GMR Energy’s entire stake in GMR Kamalanga Energy Ltd to JSW Energy was put on hold due to Covid-19 outbreak.
In February, JSW Energy had signed a share purchase agreement to acquire 100 per cent of GMR Kamalanga Energy, which owns and operates a 1,050 MW (3×350 MW) thermal power plant in Odisha, for Rs 5,321 crore (subject to working capital and other adjustments).
“The transaction has been put on hold given the ongoing uncertainty and will be revisited once the situation normalises,” JSW Energy had said in a BSE filing in May.
The JSW Energy, in October, had announced the acquisition of GMR Kamalanga Energy Ltd for Rs 5,321 crore.
GMR Kamalanga is a subsidiary of GMR Energy Ltd and operates a 1,050-MW thermal power plant in Odisha.
The acquisition was meant to be an all-cash deal and included three plants with 350 MW capacity each, located in Odisha’s Dhenkanal district, with revenues of Rs 2,195 crore.
The GMR Kamalanga Energy, a subsidiary of GMR Energy, owns and operates three units of 350 MW capacity at Dhenkanal in Odisha.