TPG, Tokyo Electric, Brookfield in Discussions to Acquire Stake in JSW Neo Energy
In accordance with people familiar with the situation, private equity investors TPG, Tokyo Electric Power Company (Tepco), and Brookfield are in advanced talks to acquire a minority stake in JSW Neo Energy.
According to them, the subsidiary of publicly traded JSW Energy may sign a deal with two of these funds in the coming weeks. JSW Group expects to raise up to $500 million from the stake sale, which will be used to expand its renewable energy operations.
JSW Neo Energy will house the parent company's upcoming renewable projects for green hydrogen generation, storage, and production.
JSW Energy previously stated that it would be relocating its existing hydro energy projects into subsidiaries under JSW Neo Energy. According to the company, this will help it build and streamline its renewables portfolio, as well as set up an efficient holding structure for fundraising and unlocking value for shareholders.
TPG, a US private equity firm with several investments in India, including BookMyShow and Dream11, had previously invested $1 billion in Tata Motors through its Rise Climate fund. Tepco is a partner in ReNew Power via Jera, a joint venture with Chubu Electric Power Co. Brookfield Asset Management, based in Canada, is also looking to expand its renewable energy portfolio in India.