Welspun Corp to sell assets worth Rs 940 crore

Welspun Corp, the flagship firm of the Welspun Group, Sunday said it will sell its assets worth Rs 940 crore to two companies -- Laptev Finance and Welspun Captive Power Generation.

The company has signed agreement with Laptev Finance to sell its plates and coils mill division for Rs 848.5 crore.

"The Board of Directors of the Company at its meeting held on March 30, 2019...approved the slump sale of the business undertaking of the Company viz Plates and Coils Mill Division (PCMD) to Laptev Finance Pvt Ltd," Welspun Corp said in a regulatory filing.

The business transfer agreement (BTA) was executed between the two parties on March 31, and the sale is expected to be completed by end of this year.

The consolidated revenues of PCMD was Rs 1,230 crore as on March 31, 2018.

Welspun Corp also said that it will sell 43 megawatt power plant to Welspun Captive Power Generation for Rs 66.9 crore.

"The Board of Directors of the Company at its meeting held on March 30, 2019...approved the slump sale of the business undertaking of the Company viz 43 MW power plant to Welspun Captive Power Generation Ltd (WCPGL)," it said.

The BTA between the two parties was executed on March 30, 2019 and the sale is expected to be completed by May 31, 2019.

WCPGL is part of Welspun Group, and Welspun Corp holds 19.75 per cent interest in the company.

However, the transaction was conducted on arm's length basis.

"The sale consideration for PCMD is Rs 848.5 crores, and closing adjustments pertaining to net current assets as of closing date (expected to be approximately Rs 25 crores), taking the total expected consideration to Rs 873.5 crores. The 43 MW Power Division is being sold at Rs 66.9 crores," Welspun Corp said.