Jindal Steel and Power revises power arm's divestment
The company told the media that the decision to revise the offer was taken, after feedback was received from several investors by the company after its initial offer in May, who cited a low valuation of the deal.
A promoter entity Worldone will acquire all the equity shares and redeemable preference shares for a total consideration of nearly Rs 7,401 crore of JPL held by JSPL.
JSPL said that out of the total bid value, Rs 3,015 crore will be payable by cash and the remaining will be by way of assumption and takeover of liabilities and obligations of JSPL, according to the revised offer.
Subramanian said that the debt of Rs 4,386 crore of JPL, is taken over by the promoter company from JSPL in this revised proposal.
Founder and managing director of InGovern Research Services, Subramanian, had opposed the initial divestment proposal.
JSPL has maintained the revised offer is now simple, where there will be no continuing financial link between JSPL and JPL post the divestment.
JSPL also said that it has decided to undertake a competitive bidding process to realise the highest value possible from the JPL stake sale, using the revised offer of Rs 7,401 crore as the base offer.
JSPL will undertake an additional transparent competitive bidding process open to the world to observe if the company can obtain an even higher value than the present revised offer by Worldone.
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