Orix to buy 7 wind plants of IL&FS

Mumbai, May 19: Debtridden IL&FS on Sunday said Japan's Orix Corporation, which owns 49 per cent share each in its seven operating wind power plants, has expressed an intent to buy the remaining stake in those assets.

The seven wind power plants, operating as special purpose vehicles (SPVs) and owned by IL&FS Wind Energy Limited (IWEL), are spread across 12 states with a total generation capacity of 874 MW.

The group had started the process selling the controlling stake in the wind power plants in November by inviting expressions of interest.

The cash-strapped group had earlier said that Gail (India) Ltd had emerged as the highest bidder to acquire seven wind power plants, offering Rs 4,800 crore for 100 per cent of enterprise value, with no hair cut to the debt of the SPVs, which is close to Rs 3,700 crore.

"The intent to buy 51 per cent stake is in exercise of Orix's right under the terms of an existing MoU wherein Orix can match the price offered by the highest bidder for purchasing IWEL's stake in the wind SPVs," Infrastructure Leasing and Financial Services (IL&FS) said in a statement.

The group expects the deal to be closed by the end of next month.

The completion of sale of SPVs to Orix will be subject to meeting all compliances and approvals, including approval of the NCLT for the proposed resolution framework, it said.

The sale proceeds, as and when realised by IWEL, will be held in a trust for distribution to the relevant stakeholders as per the resolution framework. —