Hindustan Times ST (Jaipur)

JSPL to sell power biz to promoter firm for ₹3,015 cr

- Kalpana Pathak kalpana.p@livemint.com

MUMBAI: Jindal Steel and Power Ltd (JSPL) on Tuesday said its board has approved the sale of its power subsidiary Jindal Power Ltd to Worldone, a promoter group company, for ₹3,015 crore.

Worldone was selected after it submitted the highest binding bid on acceptable terms and conditions in a bidding process run by Grant Thornton Advisory, JSPL said.

“The board of directors of JSPL has approved the divestment of its entire equity interest (representi­ng 96.42% of the issued and paid-up capital) in Jindal Power by way of sale of shares, to Worldone Pvt. Ltd, a promoter group company and a related party to the company,” JSPL said in a regulatory filing.

It added that the divestment is in line with JSPL’S strategic objective to continuous­ly reduce its debt, focus on its India steel business and significan­tly reduce its carbon footprint by almost half as part of its environmen­tal, social and corporate governance (ESG) objectives.

“This divestment is yet another step towards our vision to reduce debt substantia­lly and create a robust balance sheet for our investors and stakeholde­rs,” said JSPL managing director VR Sharma, adding that the company will now focus on undertakin­g an expansion of its Angul steel plant from 6 million tonnes per annum (mtpa) to 12 mtpa.

“Infrastruc­ture spending in India is bound to grow exponentia­lly and JSPL is fully aligned with the government’s vision of achieving 300 mtpa steel production by 2030. We firmly believe in the India growth story and its potential to be an engine of global growth,” he added.

The proposed sale is subject to necessary approvals from JSPL shareholde­rs, regulators, lenders and Jindal Power.

“Long-stop date for completion of the proposed sale is 12 months which maybe mutually extended by the parties thereto, failing which the proposed sale shall terminate,” JSPL said.

The board also approved the execution of a binding share purchase agreement, a loan agreement, and other ancillary agreements in relation to the proposed sale and, accordingl­y, the company has executed a share purchase agreement.

 ?? BLOOMBERG ?? JSPL said the divestment is in line with its strategic objective to continuous­ly reduce its debt.
BLOOMBERG JSPL said the divestment is in line with its strategic objective to continuous­ly reduce its debt.

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