Reported By:
| Edited By: Satish John |Source: |Updated: Sep 14, 2017, 03:48 PM IST
Anil Ambani official rushes to Chennai for firefighting
MUMBAI: It’s a case that nearly turned sour. NEPC India Ltd, the beleaguered Chennai-based company, had signed a deal to sell its wind energy division to Southern Wind Farms, an entity controlled by Reliance Capital Ltd, in January this year. On Monday, a couple of high networth investors of NEPC called for an emergency board meeting on Thursday to review the sale - only to retract by Tuesday evening after “matters were amicably sorted out”.
The proceeds of the sale were to be paid to bank creditors, and make the company — among the earliest entrants into the civil aviation and wind energy segments in India — into a debt-free entity.
A senior official from Reliance Capital is stationed in Chennai, trouble-shooting for the new investors in Southern Wind Farms. Reliance Capital holds close to 51% in the company.
The stakes are huge: the Indian wind energy industry, the fourth-largest in the world, is poised to quadruple in size in six years.
The NEPC board meeting was slated to discuss and review the progress of the “slump sale agreement” of wind energy division dated January 16, 2006, with Southern Wind Farms (owned by Reliance Capital, Tarun Jain and Nimesh Shah) and to discuss the
issues particularly with respect to non-fulfillment of various obligations by Southern Wind Farms as per agreement.
Reliance Capital paid Rs 92 crore to acquire 51% stake in the NEPC division. The bone of contention between the seller and the purchaser included non-receipt of payments from Southern Wind Farms. For a consideration of Rs 153.59 crore, NEPC India was to transfer the entire business - tower manufacturing and assembly facilities in Pondicherry.
Of the consideration, Rs 135 crore was to be paid directly to NEPC India’s secured and unsecured creditors. NEPC officials confirmed that the meeting has been postponed after it received assurances from the buyers that the balance amount will be paid within two months.
The shareholders of NEPC India will get 12.5 shares in the newly formed special purpose vehicle, Southern Windfarms Pvt Ltd, for every 100 shares held in NEPC India.
Southern Wind Farms is said to own a muster of employees far more than its needs. This was among the sore points in the whole affair. NEPC officials declined to comment on this.
Instead, they said, the first installments of the remainder sum will start flowing in within two weeks. The amount is believed to be in the region of Rs 100 crore, but could not be confirmed. Despite several attempts, Tirupathi Khemka, managing director of NEPC, could not be reached.
His office said he’s in the midst of meetings. After the sale, NEPC India will have only the aviation division.
The company holds two aviation licences, one its own and another when it acquired Damania Airways.
