Kolkata: JSPL subsidiary, Jindal Steel & Power (Mauritius)Ltd. (JSPML) has accepted a binding offer from Templar Investments Limited to divest its entire stake in its Oman asset, Jindal Shadeed Iron and Steel Co LLC(JSIS Oman).
The enterprise value of the deal is over US $ 1 billion.
JSPL held 99.9% stake in the Oman asset which it had acquired for $ 464 million in 2010. There was a $ 829 million liability over the Oman unit.
The divestment is in line with JSPL’s vision and commitment to continuously bring down its debt and deleverage its balance sheet, an official statement from JSPL on Tuesday said. JSPL has plans to bring down its debt level to around Rs 25,000 crore in two years.
Alpen Capital, a Middle East-based investment bank was appointed which ran a sale process and received competitive offers from multiple interested bidders. CMS Cameron McKenna Nabarro Olswang LLP, Oman and Cyril Amarchand Mangaldas, India are the legal advisors for the transaction, the statement added.
The Oman plant has a capacity of 2.4 million tonne.
Commenting on the deal, V R Sharma, managing director, JSPL said: “This sale is in-line with our vision to reduce debt and create a much healthier balance sheet for our investors and stakeholders. We firmly believe in the India growth story.”
The transaction is subject to approval from shareholders of JSPL and lenders of JSIS Oman among others. JSPL said it expects the transaction to close in approximately within a month.