Jindal Steel launches tender for the sale of Jindal Power
Jindal Steel & Power Ltd (JSPL) announced on Sunday that it will launch an additional transparent bidding process to get the most out of the proposed sale of the stake in its wholly-owned subsidiary Jindal Power Ltd (JPL ). He also said that the revised offer of 7,401 crore (the previous offer was â¹ 3,015 crore) made by Worldone Pvt Ltd, a company owned by the JSPL promoter group, would be used as the base offer in the tender.
The company will publicize the revised and transparent bidding process in the public domain and provide interested bidders around the world an equal opportunity to come forward and improve the current revised bid of 7,401 crore, according to a report. press release published by JSPL.
According to the revised offer, Worldone will repurchase all shares and redeemable preferred shares of JPL held by JSPL for a total of â¹ 7,401 crore of which Rs 3,015 crore will be payable in cash and the balance of Rs 4,368 crore will be paid taking into charge and assumption of the debts and obligations of JSPL.
With the revised offer, the company said there would be no continuation of the financial link between JSPL and JPL after the divestment. He said the decision is based on comments he received from JSPL investors.
âJSPL was successful in negotiating an improved revised offer taking into account all of the investor feedback received over the past few weeks. In addition, JSPL also announced that it is undertaking an additional transparent competitive bidding process open to the world as a whole (domestic and international) to see if the Company can achieve an even higher value than the current revised bid given by Worldone. JSPL is fully committed to its primary objective of maximizing the value of the JPL divestiture and protecting the interests, âsaid JSPL management.
It may be recalled that JSPL’s earlier attempt to sell its subsidiary JPL to the promoter’s family at a quarter of the price hit a roadblock after shareholder advisory firm Ingovern raised questions about the price. to which control is requested to be transferred to the company of the promoter group Worldone. Ingovern had asked JSPL shareholders to reject the divestiture proposal.