Mumbai: Orix Corporation of Japan, which owns 49% stake in each of the seven operating wind power plants of the IL&FS group, has expressed its intent to buy out the remaining 51% stake held by IL&FS Wind Energy Ltd, IL&FS said in a press statement. Orix will be exercising its 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 plants.
In April, state-run gas utility GAIL (India) Ltd had offered to pay ₹4,800 crore (as enterprise valuation) for 874-megawatt (MW) wind power portfolio, subject to Orix agreeing to the sale. Orix, however, has now decided to buy out the remaining 51% stake by matching GAIL’s offer.
The sale process to Orix is expected to end by the end of June, subject to approvals.
The completion of sale of special purpose vehicles to Orix will be subject to satisfaction of all compliances and approvals required under applicable laws, including approval of Justice (Retd.) D.K. Jain and NCLT, in accordance with the proposed resolution framework, IL&FS said.
The sale proceeds, as and when realised by IL&FS Wind Energy Ltd, shall be held in trust for distribution to relevant stakeholders.
Another 104 MW of under-construction wind power project, a solar power portfolio of 300 MW and renewable energy EPC (engineering, procurement, construction) business will not be part of the deal. A spokesperson for IL&FS had said earlier that a separate sale process was on for residual renewable energy businesses.
With a debt of over ₹1 trillion, the government replaced IL&FS’ previous management with an Uday Kotak-led board of directors to oversee the company’s resolution process. IL&FS is implementing various asset monetisation programmes to recover what it can and repay debt. The sale process for assets in areas of education, funds, domestic roads, thermal power, water infrastructure, technology and key international assets is currently underway and binding financial bids are expected for these companies/ businesses in stages by July 2019, the statement said.
