Japan's Orix Corp seeks to buy remaining stake India's IL&FS wind assets

IL&FS Transportation Networks

19/05/2019 13:13

May 19 (Reuters) - India's debt-ridden Infrastructure
Leasing and Financial Services (IL&FS) said on Sunday that
Japan's Orix Corp  8591.T  has expressed an interest in buying
out the remaining 51% stake in IL&FS's wind energy assets.
    Orix Corp plans to buy the stake to exercise its right under
the terms of an existing agreement that allows Orix to match the
price offered by the highest bidder for buying a stake in the
wind power plants, IL&FS said https://bit.ly/2VB36LI.
 
    In April, GAIL (India) Ltd  GAIL.NS  offered 48 billion
rupees ($683.01 million) for IL&FS's power plant portfolio,
emerging as the highest bidder for its wind assets.  urn:newsml:reuters.com:*:nL3N2242IX
    "GAIL Ltd's offer of about 48 billion rupees for 100% of
enterprise value contemplated no haircut to the debt of the SPVs
(wind power plants), aggregating to about 37 billion rupees,"
the group added in a statement. 
    The Indian government replaced the company's entire board
last year after defaults on some of its debt obligations
triggered sharp declines in stock and debt markets, leading to
fears about contagion in India's financial sector. IL&FS has
initiated the sale of several assets to pay off its debt.
 urn:newsml:reuters.com:*:nL4N1WK34U
    

($1 = 70.2775 Indian rupees)

 (Reporting by Mekhla Raina in Bengaluru, editing by Louise
Heavens)
 ((Mekhla.Raina@thomsonreuters.com; +918067491775;))