Jindal Steel expects to sell over 96% Jindal Power stake by December

Jindal Steel and Power Limited (JSPL) is hopeful of selling 96.42% stakes in Jindal Power Ltd (JPL) at Rs 7,401 crore to Worldone by December 2021. Over 97% of the company's shareholders have approved the proposal to sell 96.42% stakes that Jindal Power holds to Worldone for Rs 7,401 crore, on Friday. According to the official sources, the shareholders have faith in JSPL's environmental, social, and governance (ESG) Vision. The company's almost 90% of the shareholders have approved and voted in favour of the Jindal Power divestment to Worldone. The process of divestment will be cleared by the end of this year. As per the deal, Worldone is expected to buy JPL's total equity shares and redeemable preference shares of JSPL for approximately Rs 7,401 crore. From the total cost, Rs 3,015 crore will be paid by cash, and the remaining Rs 4,386 crore will be the takeover of liabilities and obligations of JSPL with inter-corporate deposits and capital advances paid by JPL to JSPL. The divestment will have debt associated with JPL of approximately Rs 6,566.440 crore, moving out from JSPL's consolidated books, hence strengthening JSPL's balance sheet. Earlier, JSPL, through Grant Thornton Advisory Pvt Ltd, an independent transaction advisor, had taken up an additional competitive and public bidding for selling the entire stake in JPL to maximise the value for the shareholders. Inviting the Expression of Interest (EOI) from domestic and international bidders was published in newspapers but did not receive any EOI, so the revised offer from Worldone was selected as the winning bidder for JSPL. JPL's divestment is a strategic objective of JSPL to focus on the Indian steel business, become a net debt free firm, and reduce its carbon footprint by almost half of the ESG goals. Image Source Also read: Jindal Steel plans $2.4 bn investments to improve demand prospects Also read: Jindal Steel plans to invest $2.4 billion in next six years