Latest News | JSPL Hopeful of Concluding Deal to Sell 96.42 Pc Stake in Jindal Power by Dec

New Delhi, Sep 5 (PTI) Jindal Steel and Power Ltd (JSPL) expects to conclude the deal to sell its 96.42 per cent stake in its arm Jindal Power for Rs 7,401 crore to a promoters-owned firm Worldone by this year end.

More than 97 per cent shareholders of the company on Friday approved the proposal to sell 96.42 per cent stake the company holds in Jindal Power for Rs 7,401 crore to Worldone.

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"It is wonderful to acknowledge that our shareholders have shown faith in JSPL's ESG Vision. More than 90 per cent of shareholders have voted in favour of the Jindal Power divestment to the Worldone. The company expects that by the end of this calendar year after all sorts of statutory clearances the divestment process will be over," official sources from JSPL told PTI.

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 crore.

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Out of total consideration, Rs 3,015 crore will be payable by cash, and the balance Rs 4,386 crore (approximately) will be 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.

The deal will also entail debt associated with JPL (of Rs 6,566.440 crore approximately as of December 31, 2020) moving out of JSPL's consolidated books, thereby, strengthening JSPL's balance sheet.

As announced earlier, the JSPL through an independent transaction advisor (Grant Thornton Advisory Pvt Ltd) had undertaken an additional competitive & publicly held bidding process for the sale of its entire stake in JPL, in order to maximise the value for our 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.

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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)