Jindal Steel & Power launches transparent bidding process for JPL

Jindal Steel & Power Limited (JSPL) has launched a competitive transparent bidding process for the proposed sale of a stake of 96.42% in its power business — Jindal Power Limited (JPL).

The Indian steel and energy company revealed that after multiple rounds of talks and negotiations, it has negotiated a revised and enhanced binding offer from Worldone Private Limited.

Under the revised offer, Worldone will acquire all the equity shares as well as redeemable preference shares of Jindal Power Limited held by Jindal Steel & Power for nearly INR 7,401 crores ($990 million).

The consideration is made up of INR 3,015 Cr in cash and the remaining amount of around INR 4,386 worth crores will be by assumption and takeover of liabilities and obligations of Jindal Steel & Power pertaining to inter-corporate deposits and the capital advances extended by the power business to the company.

Worldone is a company owned by the promoter group of Jindal Steel & Power.

Jindal Steel & Power launches transparent bidding process for Jindal Power Limited. Photo courtesy of MonikaP from Pixabay.

In April 2021, Jindal Steel & Power said that it had agreed to a binding offer from Worldone to sell the Jindal Power Limited stake for INR 3,015 crores. The sale includes 3.4GW of coal-fired power projects located in Chhattisgarh and other non-core assets owned by Jindal Power Limited.

Jindal Steel & Power said that the revised offer will not have any financial linkage with Jindal Power Limited after the divestment. This was one of the main requests by its investors during the feedback sessions, said the steel and energy company.

Meanwhile, Jindal Steel & Power plans to advertise a transparent bidding process in the public domain to offer equal scope for interested buyers from around the world to improve or better the present revised offer from Worldone.

The management of Jindal Steel & Power said: “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 of all its stakeholders, including its minority shareholders.”