JSPL to sell its stake in its Oman subsidiary, Jindal Shadeed

JSPL's 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 divestment is in line with JSPL's vision and commitment to continuously bring down its debt and deleverage its balance sheet. The enterprise value of the deal is over US $1 billion. 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.

V.R. Sharma, MD - 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 expects the transaction to close in approximately a month.

Shares of JINDAL STEEL & POWER LTD. was last trading in BSE at Rs.161.6 as compared to the previous close of Rs. 152.95. The total number of shares traded during the day was 1934505 in over 12843 trades.

The stock hit an intraday high of Rs. 164.85 and intraday low of 155.05. The net turnover during the day was Rs. 310981044.

Source : Equity Bulls

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