The JSPL has decided to launch an additional transparent competitive bidding process for the proposed stake sale of the JPL. After various rounds of discussions and negotiations, the JSPL and its transaction advisors have successfully negotiated a revised and improved binding offer (“Revised Offer”) from Worldone accommodating all of the investor feedback received by the company.
Key highlights of the revised offer are that Worldone will buy out all the equity shares and redeemable preference shares of JPL held by the JSPL for a total consideration of approximately Rs. 7,401 crore. Of which, Rs. 3,015 cr will be payable by cash, while the remaining Rs. 4,386 cr (approximately) will be by way of assumption and takeover of liabilities and obligations of the JSPL in relation to inter-corporate deposits and the capital advances extended by the JPL to the JSPL.
The company said that it effectively meant that the revised offer was now simple and straight forward where there will be no continuing financial linkage between the JSPL and the JPL post the divestment. This was one of the key expectations from the JSPL investors during the feedback sessions held earlier and has been addressed comprehensively.
Going above and beyond to protect the interests of its investors, especially its minority shareholders, the JSPL has also taken the decision to undertake a competitive bidding process to leave no stone unturned to realise the highest value possible from the JPL stake sale, using the revised offer of Rs. 7401 crore as the base offer.
The transparent bidding process, the company added, will be advertised in the public domain and will present an equal opportunity for interested bidders from around the world to come forward and improve the current revised offer of Rs. 7401crore.
“JSPL has been able to successfully negotiate an improved Revised Offer accommodating all of the investor feedback received over the last several weeks. In addition, JSPL has also announced to undertake an additional transparent competitive bidding process open to the World at large (domestic & international) to see if the Company can secure an even higher value than the present Revised Offer given by Worldone. JSPL is fully committed to its primary goal of value maximization from the JPL divestment and protecting the interests of all its stakeholders, including its minority shareholders.” said the JSPL management.
JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors. Having an investment of $ 11 billion USD across the globe, the company is