Hyderabad-based Mytrah Energy India Ltd (MEIL), a wholly owned subsidiary of London Stock Exchange-listed Mytrah Energy Ltd, has cancelled its plan to buy 59.75 MW of operational wind power assets in Tamil Nadu and Maharashtra, according to an LSE disclosure.
“This decision was taken due to the uncertainty regarding the regulatory clearance for the deal and due to certain due diligence findings remaining unresolved,” the company said in the filing.
In March this year, the company announced it had agreed to conditional terms for the acquisition while in May, it received conditional offers for debt financing for the acquisition, which was subject to regulatory approval and formal documentation.
Meanwhile, the Indian firm has said that the construction of 238 MW of wind projects is in line with expectations. Its wind parks in Burgula in Andhra Pradesh (37.4 MW), Savalsang in Karnataka (100.3 MW) and Vagarai in Tamil Nadu (100.5 MW) are on track to be completed in the closing quarter of 2013.
Founded in 2010, Mytrah owns and operates wind farms across India. The company, formerly known as Caparo Energy Ltd, changed its name to Mytrah in September 2011. It has projects in various stages of development across Rajasthan, Gujarat, Maharashtra, Andhra Pradesh and Karnataka. Currently, the firm has an installed capacity of 309.9 MW in India.
In June 2011, the Indian arm (Caparo Energy India Ltd at that time) raised $74.32 million from the Indian Infrastructure Fund, managed by IDFC Project Equity Co Ltd, while in October 2010, Henderson Global Investors Ltd put in $30 million in the UK-based parent company. Mytrah is currently evaluating a number of other target projects and acquisitions.
“With 238 MW of new capacity due to come on stream in Q4 this year, we remain on course to almost double our installed capacity in India by the end of the year. In addition, with the funding in place for an acquisition, we are confident that this will be utilised this year,” said Ravi Kailas, chairman and CEO of Mytrah Energy.
(Edited by Sanghamitra Mandal)