JSPL finalize a deal with Worldone toward divestment of its 96.42% stakes in JPL

JSPL’s Board of Directors had accepted Worldone’s revised binding offer to divest its 96.42 percent stake in Jindal Power (JPL), for INR 7401 crore.

Worldone Private Limited revised binding offer has been accepted by the Board of Jindal Steel and Power Limited’s (JSPL). The revised offer was made towards the divestment of JSPL’s 96.42 percent stake in Jindal Power Limited (JPL). JPL is a subsidiary of JSPL.

JSPL through an official statement issued on Saturday stated that the Revised Offer, as laid out in our notification dated 24 July 2021, revolves around Worldone buying all the equity shares as well as the redeemable preference shares of JPL held by JSPL for the total sum of around INR 7,401 crore.

The statement further informed that of this total amount – INR 3015 crore will be payable by cash while the remaining INR 4386 crore shall consist of the assumption of and taking over of JSPL’s liabilities and obligations relating to inter-corporate deposits and capital advances paid by JPL to JSPL.

According to the announcement, as part of the deal, debt associated with JPL is expected to be moved from JSPL’s consolidated books (approximately Rs 6,566 crores as of December 31, 2020) strengthening the company’s balance sheet.

In accordance with its broader ESG objectives, JSPL said its divestment of JPL aligns with its strategy to focus on its India Steel business, become a Net Debt Free company, and cut down on its carbon footprint to half.

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