JSPL to Launch Competitive Bidding for Jindal Power Divestment
Jindal Steel & Power Ltd said that it will launch an additional transparent competitive bidding process so as to realise the highest value possible from the proposed stake sale in its wholly owned subsidiary Jindal Power Ltd. It also said that the revised offer of INR 7,401 crore, earlier offer was INR 3015 crore, made by company owned by the promoter group of JSPL Worldone Pvt Ltd, would be used as the base offer in the competitive bidding. The company will advertise the transparent revised bidding process in the public domain and will present an equal opportunity for interested bidders from around the world to come forward and improve the present revised offer of INR 7,401 crore
According to the revised offer, Worldone will buy out all the equity shares and redeemable preference shares of JPL held by JSPL for a total of INR 7,401 crore of which Rs 3,015 crore will be payable by cash and the balance of INR 4,368 crore will be through the assumption and takeover of liabilities and obligations of JSPL. With the revised offer, the company said there would not be any continuation of financial linkage between JSPL and JPL after the disinvestment takes place.
It said the decision is based on the feedback it received from the JSPL investors.