Jindal Steel and Power Limited (JSPL) has decided to launch an additional transparent competitive bidding process for the proposed stake sale of its subsidiary Jindal Power Limited (JPL).
After various rounds of discussions and negotiations, JSPL and its transaction advisors have successfully negotiated a revised and improved binding offer from Worldone accommodating all of the investor feedback received by the Company.
The key highlights of the revised Offer are that Worldone will buy out all the Equity Shares and Redeemable Preference Shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 crore of which (i) Rs 3,015 crore will be payable by cash, and (ii) the balance Rs 4,386 crore (approximately) will be by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances extended by JPL to JSPL.
In effect, the Revised Offer is now simple and straight forward where there will be no continuing financial linkage between JSPL and JPL post the divestment.
This was one of the key asks by JSPL investors during the feedback sessions held earlier and has been addressed comprehensively.
To protect the interests of its investors, especially its minority shareholders, JSPL has also taken the decision to undertake a competitive bidding process to leave no stone unturned to realise the highest value possible from the JPL stake sale, using the Revised Offer of Rs 7,401 crore as the base offer.
The bidding process will be advertised in public domain and provide opportunity for interested bidders from around the world to improve or enhance the present Revised Offer of Rs 7,401 crore.
"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 and 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." said the JSPL management.
