The Competition Commission of India gives a nod to acquisition of Jindal Power by Worldone
- ByTejika Bajaj | December 31, 2021
The Competition Commission of India has given an approval to the recent acquisition of Jindal Power by Worldone. As per the terms of acquisition, Worldone would now hold 96.42 per cent of stake in Jindal Power Limited from Jindal Steel and Power Ltd.
As a part of the acquisition deal, Worlone will pay a consideration of INR 7,401 crore to Jindal Steel and Power Ltd for a majority stake in the latter.
The consideration amounting to INR 7,401 crore is essentially the revised offer that Worldone made to JSPL. Worldone is a private company owned and operated by the promoter group of Jindal Power and Steel Limited. An investment holding company, Worldone holds investment in a plethora of listed as well as unlisted companies.
Sources reveal that, out of the consideration amount of INR 7,401 crore, INR 3,015 crore would be disbursed through a simple cash transaction whereas the balance amount of INR 4,386 crore will be set off by way assumption as well as takeover of liabilities and obligations of JSPL with regard to the inter-corporate deposits and capital advances extended by Jindal Power Limited to JSPL.
It is to be noted that Jindal Power Limited is engaged in harnessing thermal power by using coal as a fuel source. Looking ahead, the giant also intends to foray into the renewable energy segment in the wake of depletion of natural reserves.
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