Jiangsu Longzhe may buy majority stake in Diamond Power

Chinese firm Jiangsu Longzhe may soon seal a deal to buy majority stake in Diamond Power Infrastructure for USD 125 million.
EY was mandated by the company's lenders to evaluate alternative options and finalise the best option in June 2016 and this exercise leads to conclusion of a fair and transparent process of investor induction followed by the lenders in the company, Diamond Power said in a BSE filing.
"The modalities and terms sheet of Jiangsu Longzhe was discussed in details to finalise the next steps of the transactions," it said.
Earlier this month, the company had informed BSE about receiving an investment proposal of around USD 125 million (Rs 840 crore) from Jiangsu Longzhe Trade & Development Company and their associates.

The joint lenders forum had decided re-alignment of debt (SDR) as per the plan submitted by the company on the recommendation of lenders core committee.
"The offer received from Jiangsu Longzhe Trade & Development Company, Nanjig, PR China is considered at the Base Minimum while carrying out the above process by Lenders through EY, any better then it will be considered. The company estimates to complete the entire process in 90-100 days," Diamond Power had said last month.