Orix to match GAIL offer, buy out IL&FS Wind

Japan's Orix Corporation will acquire the balance stake in IL&FS Wind Energy Ltd's (IWEL) assets after matching GAIL Ltd's offer.

Orix already owns a 49% stake in each of the seven operating wind power plants of IL&FS Group. The total generation capacity of the assets is 874 mw.

Last month, GAIL had emerged as the highest bidder for IL&FS Group's stake in the wind assets portfolio with its offer of around Rs 4,800 crore for 100% enterprise value of these seven Special Purpose Vehicles (SPVs).

Around 24 companies had submitted Expression of Interest invited by the debt-laden group.

"GAIL's offer...contemplates no haircut to the debt of the SPVs, aggregating to approximately Rs 3,700 crore," last month's IL&FS said last month.

Now, Orix will buy out the balance 51% stake, making them the sole owner of these seven wind power plants.

"This intent to buy 51% stake is in the exercise of Orix's right under the terms of an existing Memorandum of Understanding wherein ORIX can match the price offered by the highest bidder for purchasing IWEL's stake in the wind SPVs," a statement by IL&FS Group said.

The sale proceeds, as and when realised by IWEL, shall be held in trust for distribution to the relevant stakeholders in accordance with the proposed resolution framework filed by the central government with the National Company Law Appellate Tribunal.

Closure of the sale process is expected by June-end, subject to legal approvals.

After the takeover by the new Board, several assets have been put on sale as part of the overall resolution process for IL&FS Group, thereby reducing the group's debt.

At the moment, the 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.

ORIENTAL BID

• Orix already owns a 49% stake in each of the seven operating wind power plants of IL&FS Group. The total generation capacity of the assets is 874 mw
   
• Last month, GAIL had emerged as the highest bidder for IL&FS Group's stake in the wind assets portfolio with its offer of around Rs 4,800 crore