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 (Listing 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 Private
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
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. Grant Thornton
acted as the Transaction 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 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. 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 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 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.”
