Japan's Orix Corporation to buy 7 wind energy plants of IL&FS, expects deal to be closed by June-end

The board of the IL&FS has initiated a sale of a number of assets to reduce a significant portion of its debt. Mumbai: Debt-ridden Infrastructure Leasing and Financial Services on Sunday said Japan’s Orix Corporation, which owns 49 percent share each in its seven operating wind power plants, has expressed intent to buy the remaining stake in those assets. The seven wind power plants, in the form of special purpose vehicles and owned by IL&FS Wind Energy Limited, are spread across 12 states with a total generation capacity of 874 MW. The cash-strapped group had earlier said that Gail Ltd had emerged as the highest bidder to acquire seven wind power plants, offering Rs 4,800 crore for 100 per cent of enterprise value with no hair cut to the debt of the SPVs, which is close to Rs 3,700 crore. “The intent to buy 51 percent stake is in the exercise of Orix’s right under the terms of an existing MoU wherein Orix can match the price offered by the highest bidder for purchasing IWEL’s stake in the wind SPVs,” Infrastructure Leasing and Financial Services said in a statement.