New Delhi, 7 August 2021: Jindal Steel & Power Limited's Board has accepted the Revised binding offer from Worldone Private Limited ("Acquirer"), to divest its 96.42 % stake in Jindal Power Limited ("JPL"), a material subsidiary of Jindal Steel and Power Limited ("JSPL"). As highlighted in our notice dated 24 July 2021, key features of the Revised Offer are that Worldone will buy out all the Equity Shares and Redeemable Preference Shares of JPL held by JSPL for a total consideration of approximately INR 7,401 Cr of which (i) INR 3,015 crore will payable by cash, and (ii) the balance INR 4,386 Cr (approximately) will be by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances paid by JPL to JSPL. The deal will also entail debt associated with JPL (of INR 6,566 440 crores approx. as on December 31, 2020) moving out of JSPL's consolidated books, thereby, strengthening JSPL's balance sheet. As announced earlier, JSPL through an independent transaction advisor (Grant Thornton Advisory Pvt. Ltd.) had undertaken an additional competitive & publicly held bidding process for the sale of its entire stake in JPL, in order to maximize the value for our shareholders. Advertisement for inviting Expression of Interest (EOI) from domestic and international bidders was published in the leading daily newspapers, however, JSPL did not receive even a single Expression of Interest (EOI), and therefore, the Revised Offer from Worldone was ipso facto selected as the winning bid by JSPL's Board. The divestment of JPL is in line with JSPL's strategic objective to focus on its India Steel business, become a Net Debt Free company and significantly reduce its carbon footprint by almost half as part of its broader ESG objectives.
About JSPL
JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors. Having an investment of $ 11 billion USD across the globe, the company is continuously scaling its capacity utilizations and efficiencies to capture opportunities for building a self-reliant India.
About World one Private Limited
Incorporated in India in 1999, Worldone Private Limited is a private company owned by the Promoter Group, managing & holding investments across various listed and unlisted companies.
For further information, please contact:
Kuldeep Singh, Corporate Communication, at +91 9899692981;
kuldeep.singh@jindalsteel.com
Sudeep Purkayastha, Corporate Communication, at +91 9899441119;
Sudeep.Purkayastha@jindalsteel.com
RamKrishnaPrayag, Corporate Communication, at +91 74282 09898;
Ram.prayag@jindalsteel.com