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Gail India on forefront to buy the energy assets of IL&FS: Report

Gail India is reportedly on the forefront to buy IL&FS’ energy assets. ET citing sources reports that assets on the block could fetch Rs 6,000 crore for IL&FS and include a controlling stake in the wind power generating plants with an aggregate capacity of 873.5 MW and those under construction with a combined capacity of 104 MW.

The report also says that solar power plants and projects under development of about 300 MW is also up for sale.

A source aware of the development speaking to the publication said “Gail India is the front-runner to buy energy assets while Japanese investor Orix reserves the right of refusal to buy the stake if the valuation falls below a particular price.”

Orix owns 49% in the energy assets up for sale.

For 1000 MW of renewable energy assets the company received 22 expressions of interest, however the response in terms of binding bids were poor as the company expected to get Rs 6,000 crore to Rs 8,000 crore from the sale of energy assets.

Another source speaking to the publication said “The approximate value of the asset is around Rs 6,000 crore and the deal will help pare debt by Rs 5,000 crore.”

On the other hand the spokesperson of the company aid bids for renewable assets have been received and are being processed.

Financial and transaction advisors for the company are Arpwood Capital and JM Financial, while Alvarez & Marsal is the resolution consultant. 

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