JSPL (Jindal Steel and Power Limited) has decided for the launch of an additional transparent competitive bidding process of the JPL’s proposed stake sale.
In April, the company announced their divestment in Jindal Power Limited, its material subsidiary.
Worldone Pvt Ltd’s binding offer was accepted by the company to divest its 96.42 per cent stake in JPL.
In a press release, it mentions that the company had accepted a binding offer from Worldone for divesting their 96.42 per cent stake in the Jindal Power Limited, as a material subsidiary of the company.
However the company has negotiated an improved binding offer from Worldone now, which claims to be simple and straightforward, where there would be no continuation of financial linkage between the JSPL and JPL after the divestment.
They said in a filing at the BSE that JSPL and their transaction advisors, after rounds of discussions and negotiations have successfully negotiated a revised and improved binding offer from the Worldone accommodating all of the investors feedback received by the company.
In the Revised Offer, the main point was that the Worldone would buy out all the Equity Shares, and also buy out all thr Redeemable Preference Shares of JPL held by the JSPL for a total consideration of approximately Rs 7,401 crore.
The company also mentioned that out of the approximate Rs 7,401 crore, at least Rs 3,015 crore would be payable by cash and the remaining Rs 4,386 crore would payable by way of assumption and takeover of liabilities and obligations of JSPL in relation to the inter-corporate deposits and the capital advances extended by the JPL to JSPL.
The divestment had been in line with JSPL’s strategic objective to keep reducing their debt, as well as to focus on their India Steel Business and to also reduce their carbon footprint by almost half as part their ESG Objectives.
