JSPL receives revised Rs 7,401 cr offer for arm Jindal Power

JSPL receives revised Rs 7,401 cr offer for arm Jindal Power

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New Delhi: JSPL on Sunday announced it has received a revised offer of Rs 7,401 crore from Worldone Private Limited for divestment of its subsidiary company Jindal Power Limited (JPL). Jindal Steel and Power Limited (JSPL) had earlier announced accepting a Rs 3,015-crore offer from Worldone Private Limited to divest 96.42 per cent stake it holds in the subsidiary company JPL.The divestment is in line with JSPL’s strategic objective to continuously reduce its debt and carbon emissions and focus on steel business.“After various rounds of discussions and negotiations, JSPL and its transaction advisors have successfully negotiated a revised and improved binding offer from Worldone accommodating all investor feedback received by the company. Worldone will (now) buy out all the equity shares and redeemable preference shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 crore,” JSPL said in a statement.The company informed that out of Rs 7,401 crore, Rs 3,015 crore will be paid cash, while the balance Rs 4,386 crore will be settled by “way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances extended by JPL to JSPL”.JSPL further said it has also taken a decision to undertake a competitive bidding process to realise the highest possible value for JPL stake sale to protect the interests of its investors, especially the minority shareholders.In the bidding process, if JSPL receives a higher offer compared to that of Worldone’s offer of Rs 7,401 crore, the company will accept it. The transparent bidding process will be advertised in the public domain and will present an equal opportunity for interested bidders from around the world to come forward and improve the offer, JSPL said.In the statement, a JSPL spokesperson said, “JSPL has been able to successfully negotiate an improved revised offer accommodating all of the investor feedback received over the last several weeks. JSPL has also announced to undertake an additional transparent competitive bidding process open to the world to see if the company can secure an even higher value than the present revised offer given by Worldone.“Part of O P Jindal Group , JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors. According to the statement, Worldone Private Limited is a private company owned by the Promoter Group of JSPL, and managing and holding investments across various listed and unlisted companies.

JSPL to launch transparent competitive bidding process for JPL divestment

Jindal Steel and Power Ltd had announced its divestment in Jindal Power Limited (JPL), its material subsidiary, in April. (Representative image)

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Jindal Steel and Power Limited (JSPL), an industrial powerhouse of the country, has decided to launch an additional transparent competitive bidding process for the proposed stake sale of JPL.

The company had announced its divestment in Jindal Power Limited (JPL), its material subsidiary, in April.

The company had accepted a binding offer from Worldone Private Limited (acquirer) to divest its 96.42 percent stake in JPL. “…. has accepted a binding offer from Worldone, to divest its 96.42 percent stake in Jindal Power (JPL), a material subsidiary of the company,” a press release had said.

The company has now negotiated an improved binding offer from Worldone, which it claimed to be “simple and straightforward where there will be no continuing financial linkage between JSPL and JPL post the divestment.”

“After various rounds of discussions and negotiations, JSPL and its transaction advisors have successfully negotiated a revised and improved binding offer (“Revised Offer”) from Worldone accommodating all of the investor feedback received by the Company,” it said in a filing at Bombay Stock Exchange (BSE).

The key highlight of the Revised Offer is that Worldone will buy out all the Equity Shares and Redeemable Preference Shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 crore. Of these, Rs 3,015 crore will be payable by cash, and the remaining Rs 4,386 crore (approximately) will be payable by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances extended by JPL to JSPL, the company said.

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.

JSPL gets revised Rs 7,401-cr offer from Worldone for group’s power unit

Jindal Steel & Power ltd (JSPL) said on Sunday it has got a revised bid from Worldone for its thermal power arm. The company is hiving off ltd (JPL) to reduce debt.

In April, divested 96.42 in JPL to Worldone for Rs 3,015 crore. Worldone Pvt is owned by the promoter group, managing and holding investments across various listed and unlisted

However, after feedback from several investors and shareholders who pointed out that the deal value is lower than expected, asked for revised bids. JSPL said it has negotiated a revised and improved binding offer from Worldone, “accommodating all of the investor feedback received by the Company.”

“Worldone will buy out all the equity shares and redeemable preference shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 crore,” said the company in a statement.

JSPL said out of the total bid value, Rs 3,015 crore will be payable by cash, and balance will be by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances extended by JPL to JSPL.

“In effect, the Revised Offer is now simple and straightforward where there will be no continuing financial linkage between JSPL and JPL post the divestment. This was one of the key ask by JSPL investors during the feedback sessions held earlier and has been addressed comprehensively,” the company said.

JPL has two coal-fired power plants—in Raigarh and Tamnar–totaling 3400 Mw. JPL earlier tried to sell the units to JSW Energy but the deal did not close.

JSPL said the company has invited proposals to match the bid of Worldone. “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,” said the management in their public statement.

JSPL had said earlier, the divestment of JPL is part of their ESG objectives to be amongst the top 10 lowest Co2 emitting steel of the world. Post the divestment, JSPL said it will focus primarily on steel production and will double the production of its Angul steel plant to 12 million tonne per annum (MTPA).