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Jindal Steel & Power (JSPL) has accepted a binding offer from Worldone to divest its 96.42% stake in Jindal Power (JPL), a material subsidiary of the company.

 

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 ESG objectives.    

 

The equity value is an all-cash offer of Rs 3,015 crore for 96.42 percent stake in JPL including 3,400 MW coal-fired power plants in the state of Chhattisgarh and other non-core assets owned by JPL.

 

The divestment is subject to receipt of requisite approvals including approval from shareholders of JSPL, approval from lenders of JPL and JSPL, and such other statutory approvals, consents, permissions and sanctions as may be necessary in line with the extant relevant guidelines.

 

Grant Thornton acted as the transaction advisor and ran a comprehensive sale process, reaching out to numerous national and international investors for the asset. Cyril Amarchand Mangaldas, India, acted as JSPL’s legal advisor for the transaction.

 

Source : https://www.constructionweekonline.in/business