JSPL shareholders give nod to sell 96.42% stake in arm for ₹7,401 cr
NEW DELHI: Jindal Steel and Power Ltd (JSPL) shareholders on Friday approved the deal to sell 96.42% stake in its arm Jindal Power for ₹7,401 crore to its promoters owned firm Worldone, a source said.
Jindal Power stake sale to Worldone has been approved by the JSPL shareholders at EGM (extraordinary general meeting) held on September 3, 2021, the source told PTI. JSPL has proposed to sell 96.42% stake in Jindal Power to promoter owned company Worldone, the source further informed. Worldone will buy out all the Equity Shares and Redeemable Preference Shares of JPL held by JSPL for a total consideration of approximately ₹7,401 crore, the source informed.
Out of total consideration, ₹3,015 crore will be payable by cash, and the balance ₹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 moving out of JSPL’s consolidated books, thereby, strengthening JSPL’s balance sheet. As announced earlier, 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.
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.