Shares of Jindal Steel and Power (JSPL) gained over 4 per cent after ET NOW reported that the company is in talks with Middle East-based players for divestment of
Oman plant.
The report added that Oman plant has a debt of about $750 million.
“Deals are in final stages and announcement may come in next few days,” sources told ET NOW.
Oman plant has a capacity of 2.4 million tonne. “Enterprise value of the transaction at about $800 million,” the report said, adding the management was looking at selling off the plant for the past 3-4 years.
There are hopes that 90 per cent of proceeds from the sale are expected to be used to reduce debt on the book.
JSPL management did not respond to ET NOW’s queries.
The company last month posted a consolidated profit of Rs 306 crore for the quarter ended March 31 and cut its net debt by Rs 4,379 crore in FY20 on a constant currency basis.
It had posted a net loss of Rs 2,713 crore in the corresponding quarter last year.
The shares of the company closed 5.66 per cent higher at Rs 161.60 on BSE.