Jindal Steel & Power Limited (JSPL) said that its board has accepted a revised binding offer from Worldone Private Limited for its 96.42% stake in Jindal Power Limited (JPL).

As per the revised offer, Worldone has offered to buy all the equity shares and the redeemable preference shares of Jindal Power Limited held by Jindal Steel & Power for approximately INR 7,401 crores ($1 billion).

The consideration includes INR 3,015 Cr in cash and the remaining INR 4,386 crores will be by way of assumption and takeover of liabilities and obligations of Jindal Steel & Power related to inter-corporate deposits and the capital advances paid by the subsidiary to Jindal Steel & Power.

The deal will also see debt related to Jindal Power Limited, of nearly INR 6,566 crores, as of 31 December 2020, moving out of the consolidated books of Jindal Steel & Power.

Jindal Steel & Power said that, as per its announcement last month, it had launched a transparent bidding process for Jindal Power Limited. However, it could not get a single expression of interest (EOI) and had to select the revised offer from Worldone as the winning bid.

Worldone is also the promoter group of Jindal Steel & Power.

The company stated: “The divestment of JPL is in line with JSPL’s strategic objective to focus on its India Steel business, become a Net Debt Free company and significantly reduce its carbon footprint by almost half as part of its broader ESG objectives.”

  India, Jindal Power Limited, Jindal Steel & Power, Worldone Private Limited