Mumbai: Debt-ridden IL&FS Sunday said 's Corporation, which owns 49 per cent share each in its seven operating plants, has expressed intent to buy the remaining stake in those assets. The seven wind power plants, in the form of special purpose vehicles (SPVs) and owned by IL&FS Limited (IWEL), are spread across 12 states with a total generation capacity of 874 MW. The group had initiated the process of the sale of controlling stake in the wind power plants in November last year by inviting expressions of interest. The cash-strapped group had earlier said that Gail (India) Ltd had emerged as the highest bidder to acquire seven wind power plants, offering Rs 4,800 crore for 100 per cent of enterprise value with no hair cut to the debt of the SPVs, which is close to Rs 3,700 crore. "The intent to buy 51 per cent stake is in exercise of Orix's right under the terms of an existing MoU wherein Orix can match the price offered by the highest bidder for purchasing IWEL's stake in the wind SPVs," Leasing and Financial Services (IL&FS) said in a statement. The group expects deal to be closed by the end of June 2019. The completion of sale of SPVs to Orix will be subject to meeting all compliances and approvals, including approval of the NCLT for the proposed resolution framework, it said. The sale proceeds, as and when realised by IWEL, will be held in trust for distribution to the relevant stakeholders as per the resolution framework. The board of the group has initiated sale of a number of assets to reduce a significant portion of its debt. Sale process for assets in the areas of education, funds, domestic roads, thermal power, water infrastructure, technology and key international assets is currently underway and binding financial bids are expected for these businesses in stages by July 2019, the group said.
Japan's Orix Corporation plans to buy the remaining shares in a portfolio of wind farms it co-owns with IL&FS Wind Energy in India. The portfolio consists of seven plants totalling 874 MW capacity in 12 states. Orix holds a 49% stake in each project. IL&FS, which is suffering from debt-related financial difficulties, initiated the sale of its controlling shares in November. GAIL emerged as the winning bidder, but Orix decided to exercise its right to purchase the assets by matching its bid. The deal should be completed by the end of June, subject to regulatory approval.