Orix Corp. To Buy IL&FS Wind Energy Assets

Japan’s Orix Corp., which owns a 49% stake in each of the seven operating wind power plants of debt-laden IL&FS group, has expressed its intent to buy out the remaining 51% stake held by IL&FS Wind Energy Ltd (Iwel).

Orix will exercise its right under the terms of an existing pact with IL&FS (Infrastructure Leasing & Financial Services Ltd) wherein Orix can match the price offered by the highest bidder to buy Iwel’s stake in the wind power plants.

In April, state-run gas utility GAIL (India) Ltd had offered to pay ₹4,800 crore (as enterprise valuation) for the 874-megawatt (MW) wind portfolio, subject to Orix agreeing to the sale. Orix, however, has now decided to buy out the remaining 51% stake by matching GAIL’s offer.

The sale process to Orix is expected to be completed by June, subject to necessary approvals. The sale proceeds, as and when realized by Iwel, shall be held in trust for distribution to the relevant stakeholders.

This is a Syndicate News-Feed