Jindal Power bids Rs 42.03 bn in cash for Lanco Amarkantak acquisition
POWER & RENEWABLE ENERGY

Jindal Power bids Rs 42.03 bn in cash for Lanco Amarkantak acquisition

Jindal Power (JPL), promoted by Naveen Jindal, presented an all-cash offer of Rs 42.03 billion to acquire Lanco Amarkantak Power, surpassing Adani Power's Rs 41 billion bid, according to individuals familiar with the situation.

JPL had sought approval from the bankruptcy court last week to participate in the sale process of Lanco Amarkantak. The National Company Law Tribunal (NCLT) in Amaravati directed JPL to submit a plan to lenders, along with a Rs 1 billion bank guarantee. The NCLT is set to hear JPL's petition regarding its participation in the sale process.

In a previous ruling, the tribunal permitted lenders to conduct a new auction for the sale of Lanco Amarkantak, acknowledging Adani Power's delayed offer made after the majority of lenders had approved a plan led by a Power Finance Corporation consortium. JPL argued before the tribunal that broader participation from bidders would enhance recovery for lenders, as per the sources.

"A legal expert noted, 'Adani itself gave a belated offer that is 36% higher than that offered by PFC. This shows that there is merit in allowing Jindal,? as reported by a media group.

If the tribunal grants permission, this would mark the second instance of a clash between Adani Power and JPL in acquiring a distressed thermal power company.

Both companies previously participated in the Coastal Energen auction, where Adani Power emerged as the winning bidder, offering Rs 34.4 billion.

Regarding the Lanco Amarkantak auction in December 2022, only the PFC-led consortium participated, with Adani and Reliance abstaining, citing violations in the sale process.

PFC's plan, offering Rs 30.20 billion, was approved by 95% of lenders and awaited tribunal approval. Adani Power later presented an unsolicited improved offer of Rs 36.5 billion, subsequently raising it to Rs 41 billion.

Lanco Amarkantak's operational first phase includes two 300 MW units, while the under-construction second phase comprises two 600 MW units. The company holds Rs 18 billion in cash from operations in the first phase.

RP Saurabh Kumar, backed by KPMG, has acknowledged Rs 146.32 billion of claims from 17 lenders.

Jindal Power (JPL), promoted by Naveen Jindal, presented an all-cash offer of Rs 42.03 billion to acquire Lanco Amarkantak Power, surpassing Adani Power's Rs 41 billion bid, according to individuals familiar with the situation. JPL had sought approval from the bankruptcy court last week to participate in the sale process of Lanco Amarkantak. The National Company Law Tribunal (NCLT) in Amaravati directed JPL to submit a plan to lenders, along with a Rs 1 billion bank guarantee. The NCLT is set to hear JPL's petition regarding its participation in the sale process. In a previous ruling, the tribunal permitted lenders to conduct a new auction for the sale of Lanco Amarkantak, acknowledging Adani Power's delayed offer made after the majority of lenders had approved a plan led by a Power Finance Corporation consortium. JPL argued before the tribunal that broader participation from bidders would enhance recovery for lenders, as per the sources. A legal expert noted, 'Adani itself gave a belated offer that is 36% higher than that offered by PFC. This shows that there is merit in allowing Jindal,? as reported by a media group. If the tribunal grants permission, this would mark the second instance of a clash between Adani Power and JPL in acquiring a distressed thermal power company. Both companies previously participated in the Coastal Energen auction, where Adani Power emerged as the winning bidder, offering Rs 34.4 billion. Regarding the Lanco Amarkantak auction in December 2022, only the PFC-led consortium participated, with Adani and Reliance abstaining, citing violations in the sale process. PFC's plan, offering Rs 30.20 billion, was approved by 95% of lenders and awaited tribunal approval. Adani Power later presented an unsolicited improved offer of Rs 36.5 billion, subsequently raising it to Rs 41 billion. Lanco Amarkantak's operational first phase includes two 300 MW units, while the under-construction second phase comprises two 600 MW units. The company holds Rs 18 billion in cash from operations in the first phase. RP Saurabh Kumar, backed by KPMG, has acknowledged Rs 146.32 billion of claims from 17 lenders.

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