(MENAFN - The Peninsula) Abu Dhabi National Energy Co (TAQA), leading a consortium that plans to invest around 2bn to acquire hydropower assets in India, expects to close the deal this quarter, three sources familiar with the matter said.
TAQA, majority-owned by the Abu Dhabi government, is buying two hydropower plants owned by Jaiprakash Power Ventures in the northern Indian state of Himachal Pradesh
The plants have a total capacity of 1,300 megawatts. TAQA plans to take a majority stake in the plants while India's IDFC Alternatives and PSP Investments, a Canadian pension fund manager, will hold minority stakes, the sources said
"They are working to finalise it before the end of this quarter, reinforcing TAQA's confidence in the Indian market to compement its existing power generation business there," an Abu Dhabi source familiar with the matter said. "The deal value is estimated to be slightly over 2bn. The consortium is likely to take over the debts of the seller," source said
Spokesmen for TAQA and Jaiprakash Power declined to comment. The deal would be TAQA's second investment in north India.
Early last year, it acquired a minority interest in a 100 megawatt hydroelectric plant, Himachal Sorang Power, in a joint venture with Jyoti Structures.
TAQA also operates a 250 megawatt lignite power station in the Neyveli region of southern India
Last month, TAQA appointed five banks to arrange a potential international bond offer that is expected to launch this quarter.