JSPL confirms Rs 410 crore purchase of Monnet Power’s Angul plant

 

On December 9, Jindal Steel & Power (JSPL) confirmed Moneycontrol's breaking scoop on its Rs 410 crore acquisition of Monnet Power's plant in a written clarification to exchanges. The purchase will be made in accordance with the IBBI (Liquidation procedure) Regulation, 2016, it was added, and JSPL will not be purchasing shares.

The business emphasised once more that the acquisition was a "slump sale." A slump sale occurs when an asset(s) is/are transferred without assigning distinct values to each of its components or obligations.

In its statement, JSPL also made the implication that it did not consider the acquisition to be a significant event that required separate disclosure in accordance with SEBI Listing Regulations.

On December 8, Moneycontrol reported that JSPL has paid Rs 410 crore for a Monnet Power Company under-construction facility as part of an insolvency resolution process. Adani Power, according to sources, was one of the candidates for the plant.

The 1,050 MW power station is situated in the Angul district of Odisha, close to Malibrahmani. On November 2, 2022, the coal-fired power plant was put up for auction with a reserve price of Rs 400 crore on a slump sale basis. The facility will be used by JSPL to power its Angul steel factories. In the area are the JSPL-owned Utkal C, B1, and B2 coal mines.

Speaking with JSPL's Head of Strategy, Kapil Mantri, it was revealed that the deal was finished on December 7. "We have been selected to liquidate Monnet Power's power facility via NCLT for 410 crore rupees. The newly acquired asset will supply power to JSP's expanding Angul steel factory.

Mantri continued, "JSPL wants to inject new capital to make the project operational within the next year." "The expenditure required to get the plant up and running still needs to be estimated. This resource will consume 25% less coal, reducing carbon emissions "added he.

In an order dated October 23, 2019, the Mumbai bench of the National Company Law Tribunal (NCLT) announced the sale of the Monnet power facility that was in liquidation. According to the asset sale process memorandum, prospective bidders had to submit their eligibility documentation by October 15, 2022, at the latest.

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