Jindal Steel and Power (JSPL) on Tuesday said it would transfer its entire stake in its Oman asset, Jindal Shadeed Iron and Steel, to another promoter group firm, Templar Investments, for an enterprise value of over $1 billion.
Templar Investments, Mauritius, is an investment company.
In a statement on Tuesday, JSPL said it had accepted a binding offer from Templar Investments to divest its entire stake in its Oman arm in line with its commitment to continuously bring down debt and de-leverage balance sheet.
On a consolidated basis, JSPL’s net debt stood at Rs 35,919 crore as in March.
“This sale is in line with our vision to reduce debt and create a much healthier balance sheet for our investors and stakeholders. We firmly believe in the India growth story,” said managing director V R Sharma.
Jindal Shadeed reported 1.87 million tonne (MT) production and 1.88 MT sales in FY20. The revenues and ebitda for FY20 stood at $910 million and $138 million, respectively.
The transaction is subjected to approval from shareholders of JSPL and lenders of JSIS Oman, among others. The company expects the transaction to close in a month, approximately.
