New Delhi [India], August 8 (ANI): Jindal Steel and Power Limited’s Board accepted the revised binding offer from Worldone Private Limited (acquirer) to divest its 96.42 per cent stake in Jindal Power Limited (JPL), a material subsidiary of JSPL, the company informed.
“As highlighted in our notice dated 24 July 2021, key features of the Revised Offer are that Worldone will buy out all the Equity Shares and Redeemable Preference Shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 cr of which (i) Rs 3,015 crore will be payable by cash, and (ii) the balance Rs 4,386 Cr (approximately) will be payabale by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances paid by JPL to JSPL,” said JSPL in a statement issued on Saturday.
The deal will also entail debt associated with JPL (of Rs 6,566 crores approx as on December 31, 2020) moving out of JSPL’s consolidated books, thereby, strengthening
JSPL’s balance sheet, it said.
As announced earlier, JSPL through an independent transaction advisor (Grant Thornton Advisory Pvt. Ltd.) had undertaken an additional competitive and publicly held bidding process for the sale of its entire stake in JPL, in order to maximize the value for its shareholders.
“Advertisement for inviting Expression of Interest (EOI) from domestic and international bidders was published in the leading daily newspapers, however, JSPL did not receive even a single Expression of Interest (EOI), and therefore, the Revised Offer from Worldone was ipso facto selected as the winning bid by JSPL’s Board,” read the release.
The divestment of JPL is in line with JSPL’s strategic objective to focus on its India Steel business, become a Net Debt Free company, and significantly reduce its carbon footprint by almost half as part of its broader ESG objectives, it said. (ANI)
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