Infrastructure Leasing and Financial Services Ltd. has received approval from National Company Law Appellate Tribunal for the proposed sale of its 51 percent stake in seven wind energy subsidiaries to Orix Corporation of Japan, IL&FS said on Monday.
The approval was given by Justice (Retired) DK Jain, who has been appointed by NCLAT to supervise the resolution process of these IL&FS group companies, the company said in a release.
The wind energy subsidiaries are held under IL&FS Wind Energy Ltd.
Orix Corporation, at present, owns 49 percent stake in each of seven operational wind power plants of the IL&FS Group and had expressed its intent to buy out the remaining 51 percent stake held by IL&FS Wind Energy.
"The approval has been granted on the conditions that the proposal will now be placed before the NCLT for its approval, and the bid amount realized from the sale be kept in an escrow account," IL&FS said. This amount in the escrow account will only to be disbursed in accordance with the directions in the proceedings, pending before NCLT/NCLAT.
Orix decided to match the offer of the highest bidder, of about Rs 4,800 crore for 100 percent of enterprise value, contemplating no haircut to the debt of the special purpose vehicles aggregating to approx Rs 3,700 crore, the company said.
IL&FS' asset sale to Orix will lead to resolution of the following group companies:
- Lalpur Wind Energy Pvt. Ltd.
- Etesian Urja Pvt. Ltd.
- Khandke Wind Energy Pvt. Ltd.
- Retadi Wind Power Pvt. Ltd.
- Wind Urja India Pvt. Ltd.
- Tadas Wind Energy Pvt. Ltd.
- Kaze Energy Ltd.
The IL&FS board had on June 28 approved the asset sale to Orix Corporation.
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