JSPL gets revised Rs 7,401-cr offer from Worldone for group's power unit

Jindal Steel & Power ltd (JSPL) said on Sunday it has got a revised bid from Worldone for its thermal power arm. The company is hiving off Jindal Power ltd (JPL) to reduce debt.

In April, JSPL divested 96.42 in JPL to Worldone for Rs 3,015 crore. Worldone Pvt is owned by the JSPL promoter group, managing and holding investments across various listed and unlisted companies.

However, after feedback from several investors and shareholders who pointed out that the deal value is lower than expected, JSPL asked for revised bids. JSPL said it has negotiated a revised and improved binding offer from Worldone, “accommodating all of the investor feedback received by the Company.”

“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,” said the company in a statement.

JSPL said out of the total bid value, Rs 3,015 crore will be payable by cash, and balance 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 straightforward where there will be no continuing financial linkage between JSPL and JPL post the divestment. This was one of the key ask by JSPL investors during the feedback sessions held earlier and has been addressed comprehensively,” the company said.

JPL has two coal-fired power plants—in Raigarh and Tamnar--totaling 3400 Mw. JPL earlier tried to sell the units to JSW Energy but the deal did not close.

JSPL said the company has invited proposals to match the bid of Worldone. “JSPL has also announced to undertake an additional transparent competitive bidding process open to the World at large (domestic & international) to see if the Company can secure an even higher value than the present Revised Offer given by Worldone,” said the management in their public statement.

JSPL had said earlier, the divestment of JPL is part of their ESG objectives to be amongst the top 10 lowest Co2 emitting steel companies of the world. Post the divestment, JSPL said it will focus primarily on steel production and will double the production of its Angul steel plant to 12 million tonne per annum (MTPA).