Jindal Steel & Power Ltd (JSPL) said on Sunday that it would launch an additional transparent competitive bidding process to maximize the value of the proposed sale of stakes in its wholly owned subsidiary Jindal Power Ltd (JPL). It was also said that the revised bid of 7,401 kroner (the previous bid was 3,015 kroner), given by Worldone Pvt Ltd, a company owned by the JSPL promoter group, would be used as the base bid in the competitive bidding.
The company will advertise a transparent revised public bidding process and will provide an equal opportunity for interested bidders from around the world to call and improve the current revised bid of 7,401 01, the JSPL said in a statement.
According to the revised offer, Worldone will repurchase all equity stakes and redeemable preference shares of JPL held by JSPL for a total of 40 7,401 crore, of which 3,015 cros will be payable in cash and the balance of 4,368 crosses will be taken over and assumed by JSPL. -a.
With the revised offer, the company said there would be no continuation of the financial link between JSPL and JPL once the divestment occurs. It said the decision was based on feedback it received from JSPL investors.
“JSPL has been able to successfully negotiate an improved revised offer that meets all investor feedback received in recent weeks. In addition, JSPL also announced that it would undertake an additional transparent competitive bidding process open worldwide (domestic and international) to see if the company could provide even greater value than the current revised bid made by Worldone. JSPL is fully committed to its primary goal of maximizing value from the sale of JPLs and protecting interests, ”said the JSPL management.
It may be recalled that an earlier attempt by JSPL to sell its subsidiary JPL to a promoter family at one-quarter of the price barrier after stock advisory firm Ingovern raised questions about the price at which it wants to transfer control to Worldone from the promoter group. Ingovern has asked JSPL shareholders to reject the sale proposal.