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With an offer of ₹4,800 crore, state-owned GAIL has emerged as the highest bidder for the seven wind power plants of debt ridden Infrastructure Leasing and Finance Corporation (IL&FS).
“GAIL’s offer of approximately ₹4,800 crore for 100 per cent of enterprise value contemplates no haircut to the debt of the special purpose vehicles (SPVs), aggregating to approximately ₹3,700 crore,” IL&FS said on Monday.
IL&FS had invited expressions of interest for the wind assets on November 29 last year. “At the end of the binding bidding process, reached after due-diligence including site visits across 12 sites spread across seven States, GAIL (India) Ltd has emerged as the highest bidder for the seven operating wind power plants with a total generation capacity of 874 MW,” it said.
CoC approves sale
The sale process has reached an “advanced stage” and the proposal was unanimously approved by the Committee of Creditors (CoC) of IL&FS Wind Energy Ltd (IWEL), which is the majority owner of the seven wind SPVs.
It is also in discussions with ORIX Japan, the other shareholder in the SPVs.
“Closure is expected in three weeks,” ILFS said, adding that this represents a major step in the resolution process of the IL&FS Group initiated by its newly constituted board.
The sale proceeds, as and when realised by IWEL, will be held in trust for distribution to the relevant stakeholders, in keeping with the resolution framework filed with the National Company Law Appellate Tribunal (NCLAT) by the government.
The conclusion of the sale process will also be subject to the approval of the National Company Law Tribunal and Justice (Retd) DK Jain, who has been appointed to supervise the group’s resolution process.
The new board has also initiated the sale of a number of other assets of the troubled IL&FS group including education, funds, roads and thermal power plants. Binding financial bids for these are expected by May.
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