Creditor banks seek to sell at least 30 pct of India's Jaiprakash Power -source

Jaiprakash Power Ventures

28/08/2017 09:26

MUMBAI, Aug 28 (Reuters) - Creditor banks of Jaiprakash 
Power Ventures Ltd  JAPR.NS  are seeking bidders to buy a stake 
of at least 30 percent in the Indian power producer, the 
majority of which they jointly own, a banker involved in the 
sale told Reuters on Monday. 
    A document on the website of SBI Capital Markets showed an 
unidentified creditor group has hired the investment bank and 
peer Ernst & Young to help sell a minimum of 30 percent of a 
power producer to a new investor. The buyer will become the 
producer's single largest shareholder, the document showed. 
    The banker identified the power producer as Jaiprakash 
Power. The utility is 51 percent owned by ICICI Bank Ltd 
 ICBK.NS  and over a dozen other creditor banks which swapped 
debt for equity in February. 
    Jaiprakash Power and ICICI Bank and did not immediately 
respond to requests for comment. The banker was not authorised 
to speak with media on the matter so declined to be identified. 
    The potential sale falls under the central bank's Strategic 
Debt Restructuring scheme, introduced in 2015 to allow banks to 
convert part of defaulters' debt to equity and take majority 
stakes. Banks are then required to find new owners for the 
stakes but have had little success so far.  urn:newsml:reuters.com:*:nL3N1GC4OR 
    Jaiprakash Power has operational power projects totalling 
about 2200 megawatts, the bid document showed. It also owns 
stakes in 2000 megawatts of thermal power generation capacity as 
well as in an operator of a 214 kilometre (133 miles) power 
transmission line. 
    Bids must be submitted by Sept. 11, the document showed. 
 
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The debt threat lurking behind India's zombie power plants    
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 (Reporting by Devidutta Tripathy; Editing by Christopher 
Cushing) 
 ((devidutta.tripathy@thomsonreuters.com; +91 84518 40430; 
Reuters Messaging: 
devidutta.tripathy.thomsonreuters.com@reuters.net)) 
 
Keywords: JAIPRAKASH POWER M&A/