Companies

Jindal Steel to launch competitive bidding process for Jindal Power divestment

Our Bureau New Delhi | Updated on July 25, 2021

File photo   -  Bloomberg

Receives revised bid of ₹ 7,401 crore from Worldone

Jindal Steel & Power Ltd (JSPL) on Sunday said that it will launch an additional transparent competitive bidding process so as to realise the highest value possible from the proposed stake sale in its wholly owned subsidiary Jindal Power Ltd (JPL). It also said that the revised offer of ₹ 7,401 crore (earlier offer was ₹ 3015 crore) made by Worldone Pvt Ltd, a company owned by the promoter group of JSPL, would be used as the base offer in the competitive bidding.

The company will advertise the transparent revised bidding process in the public domain and will present an equal opportunity for interested bidders from around the world to come forward and improve the present revised offer of ₹ 7,401 crore, a statement issued by JSPL said.

According to the revised offer, Worldone will buy out all the equity shares and redeemable preference shares of JPL held by JSPL for a total of ₹ 7,401 crore of which Rs 3,015 crore will be payable by cash and the balance of Rs 4,368 crore will be through the assumption and takeover of liabilities and obligations of JSPL.

With the revised offer, the company said there would not be any continuation of financial linkage between JSPL and JPL after the disinvestment takes place. It said the decision is based on the feedback it received from the JSPL investors.

“JSPL has been able to successfully negotiate an improved Revised Offer accommodating all of the investor feedback received over the last several weeks. In addition, JSPL has also announced to undertake an additional transparent competitive bidding process open to the World at large (domestic & international) to see if the Company can secure an even higher value than the present Revised Offer given by Worldone. JSPL is fully committed to its primary goal of value maximization from the JPL divestment and protecting the interests,” the JSPL management said.

It maybe recalled that JSPL's earlier attempt to sell its subsidiary JPL to promoter family at one-fourth of price had hit a hurdle after shareholder advisory firm Ingovern raised issues on the price at which control is sought to be passed to the promoter group company Worldone. Ingovern had asked JSPL shareholders to reject the divestment proposal.

Published on July 25, 2021

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