Japan's Orix Corporation to buy 7 wind energy plants of IL&FS, expects deal to be closed by June-end

The board of the IL&FS has initiated a sale of a number of assets to reduce a significant portion of its debt.

Press Trust of India May 20, 2019 07:26:38 IST
Japan's Orix Corporation to buy 7 wind energy plants of IL&FS, expects deal to be closed by June-end
  • The seven wind power plants, in the form of special purpose vehicles (SPVs) and owned by IL&FS Wind Energy Limited

  • They are spread across 12 states with a total generation capacity of 874 MW.\

  • The board of the group has initiated a sale of a number of assets to reduce a significant portion of its debt

Mumbai: Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) on Sunday said Japan's Orix Corporation, which owns 49 percent share each in its seven operating wind power plants, has expressed intent to buy the remaining stake in those assets.

The seven wind power plants, in the form of special purpose vehicles (SPVs) and owned by IL&FS Wind Energy Limited (IWEL), are spread across 12 states with a total generation capacity of 874 MW.

The group had initiated the process of the sale of controlling stake in the wind power plants in November last year by inviting expressions of interest.

The cash-strapped group had earlier said that Gail (India) Ltd had emerged as the highest bidder to acquire seven wind power plants, offering Rs 4,800 crore for 100 per cent of enterprise value with no hair cut to the debt of the SPVs, which is close to Rs 3,700 crore.

"The intent to buy 51 percent stake is in the exercise of Orix's right under the terms of an existing MoU wherein Orix can match the price offered by the highest bidder for purchasing IWEL's stake in the wind SPVs," Infrastructure Leasing and Financial Services (IL&FS) said in a statement.

The group expects a deal to be closed by the end of June 2019.

Japans Orix Corporation to buy 7 wind energy plants of ILFS expects deal to be closed by Juneend

Representational image. Reuters.

The completion of a sale of SPVs to Orix will be subject to meeting all compliances and approvals, including approval of the NCLT for the proposed resolution framework, it said.

The sale proceeds, as and when realised by IWEL, will be held in trust for distribution to the relevant stakeholders as per the resolution framework.

The board of the group has initiated a sale of a number of assets to reduce a significant portion of its debt.

The sale process for assets in the areas of education, funds, domestic roads, thermal power, water infrastructure, technology, and key international assets is currently underway and binding financial bids are expected for these businesses in stages by July 2019, the group said.

Updated Date:

also read

GAIL delays construction of new pipelines because of economic slowdown
Business

GAIL delays construction of new pipelines because of economic slowdown

The delay will mean GAIL cuts capital expenditure nearly by 30 percent in 2014/15 to 36 billion rupees from the current fiscal year ending on March 31, 2014 and will also impact revenue.

ONGC to cut gas production by 40%, plans pipeline repair
Business

ONGC to cut gas production by 40%, plans pipeline repair

The company plans to carry out repair work on the 42-inch pipeline that carries natural gas from the Bassein field to Hazira, from 7 to 27 July.

Bharat Petroleum, Indian Oil shares fall up to 4% on GAIL India stake buy buzz
Business

Bharat Petroleum, Indian Oil shares fall up to 4% on GAIL India stake buy buzz

State-owned IOC and BPCL may buy 26 percent stake each in GAIL India Ltd, paying the government over Rs 20,000 crore each to become integrated energy firms