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Jindal Steel & Power Limited (JSPL) will be selling its Oman subsidiary in a bid to cut debt at a group level.
A company statement said that Jindal Steel & Power (Mauritius) Limited (JSPML) has accepted a binding offer from Templar Investments Limited to divest its entire stake in its Oman asset, Jindal Shadeed Iron and Steel Co LLC (JSIS Oman).
“The divestment is in line with JSPL’s vision and commitment to continuously bring down its debt and deleverage its balance sheet. The enterprise value of the deal is over $1 billion. Alpen Capital, a Middle East-based investment bank was appointed which ran a sale process and received competitive offers from multiple interested bidders,” a company statement said.
VR Sharma, Managing Director at JSPL, said, “This sale is in-line with our vision to reduce debt and create a much healthier balance sheet for our investors and stakeholders.”
The transaction is subject to approval from shareholders of JSPL and lenders of JSIS Oman among others. JSPL expects the transaction to close in approximately a month, the statement added.
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