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Orix buys IL&FS’ wind energy assets

Power News - Published on Tue, 22 Oct 2019

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A year after its appointment by the government, the IL&FS board has concluded its first major sale with the transfer of the group’s 51% stake in IL&FS Wind Energy to Japan’s Orix. After the sale, Orix, which previously owned 49% in each of these seven projects, now has 100% ownership. The seven wind power plants, held through seven special purpose vehicles through IL&FS Wind Energy, are spread across 12 states with a total generation capacity of 874MW and have a combined debt of around INR 3,700 crore.

Earlier, GAIL had emerged as the highest bidder at the end of a public process with an offer of INR 4,800 crore for 100% of enterprise value. However, Orix had expressed its intent to buy out IWEL’s 51% stake through exercising it’s right under the terms of an existing MoU enabling the Japanese company to match the price offered by the highest bidder.

IL&FS said that “With the order of the NCLT Mumbai, Orix has transferred the money into an escrow account around INR 590 crore towards equity value and an additional INR 216 crore towards full repayment of debt advanced by IL&FS Energy Development Company to these SPVs.”

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Posted By : Rabi Wangkhem on Tue, 22 Oct 2019
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