JSPL to divest its coal fired power business to reduce emissions,
JSPL to divest its coal fired power business to reduce emissions, debt To significantly reduce JSPL carbon footprint by almost 50%
Key Highlights
- Cash Proceeds of Rs.3,015 crores to be received at closing
- Transaction in line with ESG objectives and debt reduction strategy of JSPL to create a robust balance sheet
- Enhanced Focus on India Steel business and upcoming Angul plant expansion from 6 MTPA to 12 MTPA
Chennai, 27th April 2021: Pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listi ng Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), we wish to inform you that Jindal Steel & Power Limited (“JSPL” or “the Company”) has accepted a binding offer from Worldone Priv ate Limited (“Acquirer”), to divest its 96.42% stake in Jindal Power Limited (“JPL”), a material subsidiary of the Company. The divestment is in line with JSPL’s strategic objective to continuously reduce its debt, focus on its India Steel business and significantly reduce its carbon footprint by almost half as part of its ESG objectives. The equity value is an all-cash offer of Rs. 3,015 crores for 96.42% stake in JPL including 3,400 MW Coal fired power plants in State of Chhattisgarh and other non-core assets owned by JPL.
The divestment is subject to receipt of requisite approvals inclu ding approval from shareholders of JSPL, appr oval from lenders of JPL and JSPL, and such other statutory approvals, consents, permissions and sanctions as may be necessary in line with the extant relevant guidelines. Grant Thornton acted as the Transac tion Advisor and ran a comprehensive sale process, reaching out to numerous national & international investors for the asset. Cyril Amarchand Mangaldas, India, acted as JSPL’s legal advisor for the transaction.
Shri V.R. Sharma, MD- JSPL said, “This divestment is in line with our ESG objectives to be amongst the top 10 lo west Co2 emitting steel companies of the world. It is yet another step towards our vision to reduce debt substan t ially and create a robust balance sheet for our investors and stakeholders. Looking to the future, JSPL will be a key growth driver in the Indian steel industry and will now focus on undertaking expansion of its Angul steel pl ant from Jindal Steel & Power Limited Corporate Office Jindal Centre, 12 Bhikaji Cama Place, New Delhi 110 066 6 MTPA to 12 MTPA. Infrastructure spending in India is bound to grow exponentially and JSPL is fully align ed with GoI’s vision of achieving 300 MTPA steel production by 2030. We firmly believe in the India growth sto ry and its potential to be an engine of global growth.”
About JSPL
JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors. Having an investment of $ 11 billion USD across the globe, the company is continuously scaling its capacity ut ilizations and efficiencies to capture opportunities for building a self-reliant India. About Worldone Private Limited Incorporated in India in 1999, Worldone Private Limited is a private company owned by the Promoter Group, and managing & holding investments across various listed and unlisted companies.
