TAQA pulls plug on $1.6bn Indian hydro investment
Change of strategy behind reversal of decision to invest in two plants
Abu Dhabi National Energy Co (TAQA) is pulling out of a $1.6 bn deal to buy two Indian hydroelectric power plants because of "a change in strategy", a senior TAQA official told Reuters on Thursday.
The official, who declined to be named, did not give further details of the decision.
In March, TAQA said a consortium led by it had agreed to buy the two power plants from Jaiprakash Power Ventures.
The consortium was to spend $616 mn on equity in the plants, and in addition take over their non-recourse project debt, bringing the total enterprise value to around $1.6 bn, a TAQA spokesman said at the time.
State-run TAQA, with 51% of the consortium, was to control the operations and management of both plants.
PSP Investments, one of Canada's largest institutional investors, would own 39% and an infrastructure fund run by India's IDFC Alternatives was to hold 10 percent.