Swedish private equity firm EQT and Singapore state investment firm Temasek have agreed to sell their Indian green energy platform O2 Power to JSW Neo Energy Ltd, a wholly owned subsidiary of JSW Energy Ltd, for an enterprise value of $1.47 billion (Rs 12,468 crore).
The acquisition of O2 Power, which has an operational and under-construction portfolio of 4.7 GW, will help JSW Neo reach its target of 20 GW before 2029-30, billionaire Sajjan Jindal-led JSW Energy said in a stock-exchange filing Friday.
EQT and Temasek had set up O2 in late 2019. The company has since evolved into a full-fledged renewable energy platform that specialises in utility-scale projects across solar, wind, and hybrid energy. It has also expanded its presence, serving both the public utility and commercial and industrial segments.
O2 Power and its subsidiaries clocked total revenue of Rs 538 crore for 2023-24, up from Rs 136 crore in 2022-23 and Rs 33 crore the year before.
O2 Power was EQT’s first infrastructure investment in the region and has also become its first infrastructure exit. EQT has €246 billion in total assets under management. It owns portfolio companies and assets in Europe, Asia Pacific, and the Americas. It has offices in more than 25 countries with over 1,900 employees.
EQT, which acquired Baring Private Equity Asia in 2022 for close to $7.5 billion, is currently raising a new Asia-focussed PE fund with a hard cap of $14.5 billion.
The PE firm has invested more than its target of $5 billion in India over the past few years, Jean Eric Salata, its head of Asian business, said recently.
Meanwhile, Temasek has a net portfolio value of SG$389 billion (US$288 billion) as of 31 March 2024. It has 13 offices in nine countries around the world.
Barclays served as financial advisor and A&O Shearman served as legal advisor to EQT and Temasek. PwC was the transaction advisor to JSW Neo, while Khaitan & Co and Herbert Smith were the legal advisors. KPMG carried out financial and tax due diligence and Wind Guard carried out the technical due diligence.
