Jindal Steel & Power has accepted a binding offer from Worldone Private to divest its 96.42 per cent stake in Jindal Power, a material subsidiary of the company.
As per a JSPL statement, the divestment is in line with the company’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 per cent stake in JPL including 3,400 MW Coal fired power plants in State of Chhattisgarh and other non-core assets owned by JPL,” the statement said.
According to the company, the divestment is subject to receipt of requisite approvals including approval from shareholders of JSPL, approval 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.
“This divestment is in line with our ESG objectives to be amongst the top 10 lowest Co2 emitting steel companies of the world. It is yet another step towards our vision to reduce debt substantially and create a robust balance sheet for our investors and stakeholders,” said V.R. Sharma, MD, JSPL.
“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 plant from 6 MTPA to 12 MTPA. Infrastructure spending in India is bound to grow exponentially and JSPL is fully aligned with GoI’s vision of achieving 300 MTPA steel production by 2030. We firmly believe in the India growth story and its potential to be an engine of global growth.”