Orix sets to take full control of 874 MW wind portfolio
Japanese financial services conglomerate Orix Corp is poised to take full control of the 874 MW wind portfolio in India that is currently co-owned and controlled by India’s debt-ridden Infrastructure Leasing and Financial Services' (IL&FS).
The portfolio consists of 7 wind farms and Orix currently owns 49% in each of them. Orix plans to buy the remaining 51% stake in the wind energy assets.
Orix has the right to match the highest offer of the bidders who will target the remaining 51% stake in the wind power plants.
Last month Gas Authority of India Ltd. (GAIL) has made an offer of around INR 48 billion (US$688 million) for the projects that includes the repayment of INR 37 billion in debt becoming the highest bidder for the wind assets. It noted: "GAIL Ltd’s offer of about 48 billion rupees for 100% of enterprise value contemplated no haircut to the debt of the SPVs (wind power plants), aggregating to about 37 billion rupees."
Orix has expressed interest to rival the offer of GAIL. The sale process is subject to meeting certain conditions and receiving some approvals and is expected to close by the end of June.
The Indian government, in an attempt to reduce the damage after IL&FS failed to repay its debts, made several changes to the company's management board in 2018. IL&FS has initiated the sale of several assets to pay off its debt.
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