JSPL Disinvests Entire Stake in Oman Steel Plant for $1 Billion

SEATTLE (Scrap Monster): The India-headquartered Jindal Steel and Power Limited (JSPL) announced that it has accepted a binding offer to divest its entire stake in Jindal Shadeed Iron and Steel (JSIS Oman). The Oman assets were sold through subsidiary Jindal Steel and Power (Mauritius) Ltd. to promoter firm Templar Investments Ltd. for over $1 billion.

According to exchange filing, the sale is in line with the company’s vision to reduce debt and create healthier balance sheet. The sale process was run by Alpen Capital. The legal advisors for the transaction were CMS Cameron McKenna Nabarro Olswang, Oman, and Cyril Amarchand Mangaldas, India. The closing of the transaction is subject to approval from JSPL shareholders and JSIS Oman lenders. The closure is expected within a month.

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The data published by the company states that the Oman plant has a gross debt of INR 5,619 crore, as on 31^st March, 2020.

The company had acquired Shadeed Iron and Steel Co LLC from Al Ghaith Holdings PJSC of Abu Dhabi way back in 2010 for nearly $500 million. Further to that, JSPL had made investments of over $1.1 billion at the plant. It had initiated plans to sell significant stake in Oman unit to meet debt repayment obligations.