GAIL emerges highest bidder for IL&FS wind assets’ portfolio

State-run GAIL (India) Ltd. has emerged as the highest bidder for seven wind power projects of the debt-ridden Infrastructure Leasing and Financial Services (IL&FS), after it made an offer of Rs. 4,800 crore.

The process to sell the assets was initiated on November 29. After due-diligence, including visits across 12 sites spread across seven States, GAIL had emerged as the highest bidder for the seven operating wind power plants having a total generation capacity of 874 MW. The deal is expected to close in three weeks.

“GAIL’s offer of approximately Rs. 4,800 crore for 100% of the enterprise value contemplates no hair-cut to the debt of the special purpose vehicles (SPVs), aggregating to approximately Rs. 3,700 crore,” IL&FS said. The proposal was unanimously approved by the Committee of Creditors (CoC) of IL&FS Wind Energy Limited (IWEL), majority owner of the SPVs.

Engagement with ORIX Japan, the other shareholder in the SPVs, with regard to the proposal is in progress, IL&FS said.

The sale proceeds, as and when realised by IWEL, would be held in trust for distribution to the relevant stakeholders, in accordance with the resolution framework filed with the NCLAT by the government.

The new board of IL&FS had initiated sale of a number of group’s assets, aimed to address a significant portion of the group’s debt.

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