M&A

M&A

IL&FS sells stake in two energy related businesses for Rs.77.5 Cr

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Debt-laden Infrastructure Leasing & Financial Services Ltd (IL&FS) has completed two sale transactions, that of Urjankur Shree Tatyasaheb Kore Warana Power Co Ltd (Urjankur Warana) and Energy Advisory Business division of IL&FS Energy Development Co Ltd (IEDCL), generating INR 77.5 crore. Urjankur Warana owns a 44 MW bagasse-based cogeneration power plant in Kolhapur, Maharashtra. IL&FS sold its 33.33% stake in Urjankur Warana to Shree Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd (HSF or Host Sugar Factory). Urjankur Warana is an SPV jointly promoted by IEDCL, which holds 33.33% stake, and Urjankur Nidhi Trust, which holds the rest of the stake. As part of the deal, IL&FS also sold its 27.75% stake in Urjankur Nidhi Trust to HSF for INR 62.5 crore. In the second transaction, IL&FS has sold its energy advisory business, a division of IEDCL, to PTC India Ltd using the Swiss Challenge method. Proceeds from both these sales would be used to reduce IL&FS' debt.