<article>Sajjan Jindal’s JSW Energy has called off a plan to acquire the 500 megawatt (MW) Bina thermal power plant of Jaiprakash Power Ventures, the company said on Monday.</article>

Sajjan Jindal’s JSW Energy has called off a plan to acquire the 500 megawatt (MW) Bina thermal power plant of Jaiprakash Power Ventures, the company said on Monday.
The deal to acquire the Bina power assets has been terminated due to lapse of time for completion of the transaction, JSW Energy said in a filing to the stock exchanges.
JSW Energy had announced in July 2016 that it would acquire Jaiprakash Power’s Bina asset, located in the Sagar district of Madhya Pradesh, for Rs2,700 crore.
“The consummation of this transaction was subject to fulfilment of certain conditions precedent. We now wish to inform you that with the elapsing of the long stop date, the proposed acquisition of the Bina project stands terminated,” JSW Energy said in the filing.
The company had earlier extended the timeline for completion of the transaction from May 2017 to December 2017.
In a separate announcement filed with the exchanges, Jaiprakash Power said that with the termination of the deal, it will not transfer its Bina power assets to its Bina Power Supply Ltd (BSPL) subsidiary. Earlier, the company had planned to transfer these assets to BSPL to facilitate the deal with JSW Energy.
Also, as part of the impending deal, JSW Energy had extended an advance loan of Rs1,000 crore to Jaiprakash Power. With the deal having fallen through now, it is not clear what the repayment schedule of the extended loan will be.
In a 3 December report on JSW Energy, Elara Securities’ Deepak Agrawala and Harshit Kapadia said, “We see potential risk of a delay in recovery of an advance of Rs1,000 crore extended to Jaiprakash Power Ventures, which is already under severe stress.”
On Monday, JSW Energy’s stock ended at Rs91.05 on BSE, down 1.35%, while Jaiprakash Power Venture Ltd’s scrip fell 3.26% to Rs 9.21. The benchmark Sensex shed 0.72% to 33,812 points.
<h4>This article was first published on <a href="http://www.livemint.com/Companies/sxOZPleYoIUUeRoaevVWTJ/JSW-Energy-cancels-deal-to-buy-500MW-Bina-plant.html">Livemint.com</a></h4>

Sajjan Jindal’s JSW Energy has called off a plan to acquire the 500 MW Bina thermal power plant of Jaiprakash Power Ventures.

India: JSW Energy shelves plan to buy Jaiprakash Power's Bina asset

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India: JSW Energy shelves plan to buy Jaiprakash Power's Bina asset

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