Orix may buy another 51% in IL&FS Wind Energy
GAIL had offered to pay Rs 4,800 crore for 100 per cent of enterprise value which was at no hair-cut to the debt of the SPVs of Rs 3,700 crore.
“This intent to buy 51 per cent stake is in exercise of Orix’s right under the terms of an existing MoU wherein Orix can match the price offered by the highest bidder for purchasing IWEL’s stake in the wind SPVs,” the company said in a statement. Earlier, at the end of the binding bid stage under a publicly conducted sale process, GAIL had emerged as the highest bidder for seven SPVs which have a total generation capacity of 874 MW. GAIL had offered to pay Rs 4,800 crore for 100 per cent of enterprise value which was at no hair-cut to the debt of the SPVs of Rs 3,700 crore.
The sale proceeds, as and when realised by IWEL, shall be held in a trust for distribution to the relevant stakeholders in accordance with the proposed resolution framework filed with the NCLAT by the Union of India. Closure of the sale process is expected by June 2019. The new board, as part of the resolution process for IL&FS Group, has initiated the sale of a number of group assets, thereby addressing a significant portion of the group’s debt.
The sale process for assets in the areas of education, funds, domestic roads, thermal power, water infrastructure, technology and key international assets is currently underway.