Japan-based Orix Corporation has expressed an intent to buy out IL&FS Wind Energy, IL&FS said on Sunday. Orix Corporation already owns 49% stake in each of the seven operating wind power plants of the IL&FS group. The Japanese company has now exercised its rights under its existing MoU (memorandum of understanding) with IL&FS group and sought to buy the remaining 51% stake in IL&FS Wind Energy.
In April, government-owned GAIL (India) had offered Rs 4,800 crore for IL&FS group s 874 MW (megawatt) wind power portfolio, subject to consent from Orix. Orix has now decided to match the offer. The sale is expected to be completed by June, subject to legal approvals.
The sale proceeds, as and when realised by IWEL, shall be held in trust for distribution to the relevant stakeholders in accordance with the proposed Resolution Framework filed with the NCLAT by the Union of India, the release said. In 2018, IL&FS and subsidiaries defaulted on their short-term and long-term debt obligations to the tune of Rs 91,000 crore.
In October 2018, the Mumbai bench of the tribunal ordered suspension of the IL&FS board, to be replaced by a government-appointed board. Kotak Mahindra Bank managing director Uday Kotak was appointed the non-executive chairman of the new board.
As a part of the ongoing debt resolution process, the government-appointed board is undertaking several asset monetisation processes to repay debts. Sale process for assets in the areas of education, funds, domestic roads, thermal power, water infrastructure, technology and key international assets is currently underway and binding financial bids are expected for these businesses in stages by July 2019, the company said