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Jindal Power and Steel (JSPL) on Tuesday said its board has approved divesting its entire equity interest in Jindal Power to Worldone, a promoter group company, for Rs 3,015 crore.

The board of directors of JSPL has approved the divestment of its entire equity interest (representing 96.42 per cent of the issued and paid up capital) in Jindal Power by way of sale of shares, to Worldone Pvt Ltd, a promoter group company and a related party to the company, JSPL said in a regulatory filing.

The equity value is an all-cash offer of Rs 3,015 crore, the company added.

JSPL said Worldone was selected by way of an elaborate bidding process run by an independent third-party merchant banker, Grant Thornton Advisory, wherein the acquirer submitted the highest binding bid on acceptable terms and conditions.

The proposed sale is subject to necessary approvals of shareholders of the company, regulatory clearances, go-ahead from lenders of the company and Jindal Power, contractual approvals and such other consents, permissions and sanctions as may be necessary in line with extant relevant guidelines.

JSPL said the long stop date for completion of the proposed sale is 12 months which maybe mutually extended by the parties thereto, failing which the proposed sale shall terminate.

The company's board also approved the execution of a binding share purchase agreement, a loan agreement and other ancillary agreements, in relation to the proposed sale and accordingly, the company has executed a share purchase agreement.

The share purchase agreement with the Worldone and Jindal Power captures the entire understanding between the parties in relation to the sale of shares held by the company.

The company's board also approved entering into a loan agreement with Jindal Power to convert the existing capital advances and inter corporate deposits availed by JSPL from Jindal Power aggregating to Rs 4,386.28 crore into an unsecured loan.

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