Mumbai, Aug 8 (IANS): Jindal Steel & Power's board has accepted the revised binding offer from Worldone Private Limited, to divest its 96.42 per cent stake in Jindal Power Ltd (JPL).

JPL is a material subsidiary of Jindal Steel and Power Limited (JSPL).

Key features of the revised offer are that Worldone will buy out all the equity shares and redeemable preference shares of JPL held by JSPL for a total consideration of around Rs 7,401 crore of which Rs 3,015 crore will be payable by cash, and the balance of around Rs 4,386 crore will be by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances paid by JPL to JSPL.

The deal will also entail debt associated with JPL (of around Rs 6,566 crore as on December 31, 2020) moving out of JSPL's consolidated books, thereby, strengthening JSPL's balance sheet.

As announced earlier, JSPL through independent transaction advisor (Grant Thornton Advisory Pvt Ltd) had undertaken an additional competitive and publicly held bidding process for the sale of its entire stake in JPL, in order to maximize the value for our shareholders.

The divestment of JPL is in line with JSPL's strategic objective to focus on its India steel business, to become a net debt free company and significantly reduce its carbon footprint by almost half as part of its broader ESG objectives, JSPL said in a regulatory filing.