Orix Seeks to Buy Out Seven IL&FS Group's Wind Power Plants
Orix Seeks to Buy Out Seven IL&FS Group's Wind Power Plants
(Bloomberg) -- Japan’s Orix Corp. is seeking to buy 51% in seven operating wind power plants of IL&FS Group, adding to the 49% stake it already holds, according to a statement from the Indian conglomerate.
Orix is exercising its right to match an offer made by the highest bidder for IL&FS Wind Energy Ltd.’s stake in the plants, according to the statement. State-run Gail India Ltd.’s bid of about 48 billion rupees ($684 million) for 100% of enterprise value had contemplated no haircut on debt of approximately 37 billion rupees taken on by the units, it said. Gail was the highest bidder for the assets, which have a total generation capacity of 874 megawatts.
IL&FS Group is in the process of disposing assets to help repay some of the about $12.6 billion in debt it owed when the conglomerate was taken over by the government last year and put under new management. Orix’s offer represents a key step in the resolution of the group, according to Sunday’s statement.
Proceeds from the sale will be held in trust for distribution under the resolution plan filed with the National Company Law Appellate Tribunal, according to the statement. The sale process is expected to close by the end of June, subject to legal approvals.
The process for disposing of other IL&FS assets including in the areas of education, funds, roads and thermal power is also underway and binding bids are expected in stages by July, according to the statement.
To contact the reporter on this story: Pratik Parija in New Delhi at pparija@bloomberg.net
To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Candice Zachariahs, Magdalene Fung
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