GAIL (India) has emerged as the highest bidder for seven operating wind power plants of Infrastructure Leasing & Financial Services (IL&FS).
The bidding process to these assets, having 12 sites spread across seven states, was launched in November last year.
“Gail’s offer of approximately Rs 4,800 crore for 100 per cent enterprise value contemplates no hair-cut to the debt of the SPVs, aggregating to nearly Rs 3,700 crore,” IL&FS said on Monday. These wind power assets have a total generation capacity of 874 MW.
The proposal was approved by the committee of creditors of IL&FS Wind Energy (IWEL), majority owner of the SPVs, it said.
The company said that engagement with ORIX Japan, the other shareholders in the SPVs, with regard to the proposal is in progress, and the deal is expected to close in three weeks.
The sale proceeds will be distributed as per the resolution framework filed with the National Company Law Appellate Tribunal (NCLAT) by the government, the company said. The closure of the deal will be subject to approval of Justice (Retd) D K Jain and NCLT.
The board of debt-ridden IL&FS, as part of the resolution process, has initiated sale of a number of group assets.
Sale process for assets including education, funds, roads and thermal power plant are currently underway and binding financial bids are expected for these companies in stages by May 2019, it said.
While around 24 firms had put in expressions of interest (EoIs), only half of them undertook due diligence for submitting financial bids.
Renewable portfolio divestment is part of IL&FS’ asset monetisation strategy to pare Rs 94,000-crore debt.
The renewable energy assets include operational wind projects with cumulative capacity of 873.5 MW and under-construction wind projects of 104 MW.
The portfolio also includes asset management services for operating wind projects and business division conducting project development and implementation of wind projects.
In addition, IL&FS’ renewable energy assets include businesses engaged in development and implementation of solar power projects for corporate customers with under-construction projects of around 300 MW.
IL&FS’ energy assets, including thermal, have been valued at Rs 8,000 crore.
LIC is the single largest shareholder in IL&FS with over 25 per cent stake and ORIX Corp owns a little over 23 per cent.