July 23 (Renewables Now) - Infrastructure Leasing and Financial Services Ltd (IL&FS) said on Monday it has received approval from India’s National Company Law Appellate Tribunal (NCLAT) to carry out the planned sale of its 51% stake in an 874-MW wind portfolio to project partner Orix Corp (TYO:8591).
The particular portfolio consists of seven operating wind farms in India owned by IL&FL through its subsidiary IL&FS Wind Energy Limited (IWEL). Japanese financial services conglomerate Orix already holds a 49% interest in the assets. As a co-owner in the portfolio, it has the right, according to an existing memorandum of understanding (MOU), to match the price offered by the highest bidder targeting the 51% interest.
As previously announced, GAIL (India) Ltd (BOM:532155) made an offer of around INR 48 billion (USD 696m/EUR 623m), including the repayment of INR 37 billion in debt, for the particular wind portfolio and ended up as the highest bidder.
NCLAT has given its nod to the planned transaction on the condition that the proposal is presented for approval by The National Company Law Tribunal (NCLT). Another condition is for the bid amount from the sale to be kept in an escrow account.
IL&FS’ board has already greenlighted the sale to Orix at a meeting in June.
(INR 10 = USD 0.145/EUR 0.130)