After receiving a 'good response' from potential buyers for its two arms, Infrastructure Leasing & Financial Services (IL&FS) has initiated the process to sell controlling stakes held by IL&FS Group in renewable energy assets and businesses.
“In order to ascertain market interest, and to examine the feasibility of maximisation of value in an orderly and transparent manner, the board, acting on behalf of its relevant subsidiaries, has today initiated the process..,” IL&FS said in a statement.
The assets include:
(i) operating wind power generating plants with an aggregate capacity of 873.5 MW, as well as under construction wind power generating plants with an aggregate capacity of 104 MW ;
(ii) asset management services for the operating wind power generating plants as well as the business division conducting project development and implementation of wind power generating plants;
(iii) businesses relating to project development and implementation of solar power generating plants and projects under development of approximately 300 MW capacity solar power plants for corporates, etc.
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According to the board, it is cognisant that these steps are required to advance the process for putting together resolution plan(s) for the IL&FS group, based on market interest and price discovery for various assets.
The proposed sale may be carried out as a basket / individually or in any combination thereof, it further said.
“Accordingly, the Board has decided to publicly solicit Expressions of Interest (EoIs) to assess the interest for a sale of its stake in the Renewable Energy Assets. The Board is taking steps for public solicitation of interest in this regard,” the statement added.
A day before, the infrastructure conglomerate announced that it has received more than a dozen EoIs for the proposed stake sale of its two arms -- IL&FS Securities Services Ltd (ISSL) and ISSL Settlement & Transaction Services (ISTSL). The company’s new board is scrutinising the EoIs for eligibility.
Any binding transaction for the sale of assets, as well as the resulting resolution plan(s), will be subject to requisite approvals (including the NCLT) before the transactions are implemented.
The new IL&FS board appointed by the National Company Law Tribunal (NCLT) submitted to the Ministry of Corporate Affairs a report on the Progress and the Way Forward, on October 30.
The report states the board’s objective is to achieve, by one or more plan(s), the resolution of the IL&FS group through certain measures, including asset divestments.
The board has appointed Arpwood Capital and JM Financial as Financial & Transaction Advisors, along with Alvarez & Marsal as Resolution Consultants.Also Read: IL&FS is a 'complex maze': Will public money come to the rescue yet again?