Jaiprakash Power surges on plant sale expectations

Tags: Companies
Shares in Jaiprakash Power Ventures Ltd surged on Friday, fuelled by market expectations that it could soon strike a $2-billion deal to sell two power plants to a group led by Abu Dhabi National Energy Co.

Sources told Reuters this month that Abu Dhabi National Energy, majority-owned by the Abu Dhabi government, was looking to buy two hydropower plants owned by Jaiprakash Power in the north Indian state of Himachal Pradesh.

On Friday, the Indian company said its board would meet on Saturday to consider recommendations for cutting debt and boosting shareholder value.

Both Jaiprakash and the Abu Dhabi company declined to comment on Friday.

Shares in Jaiprakash Power gained as much as 12.5 percent, while shares in parent Jaiprakash Associates were up 4.2 percent, moves traders said were driven by expectations for a deal.

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