Bajaj Hindusthan Sugar Ltd to sell its co-generation power business to its group company Lalitpur Power Generation Company Ltd, having 449 MW capacity at 14 locations in Uttar Pradesh.
Bajaj Hindusthan Sugar Ltd sell its power business to Lalitpur Power Generation Company Ltd for a deal of Rs.1,227 crore.
The company had announced plans in December to sell its 449 MW capacity of power business which is at 14 locations in Uttar Pradesh, to Lalitpur Power Generation Company Ltd for about Rs. 1,800 crore.
In a filing to BSE, the firm said its board considered agreement of sale of transfer of co-generation power business to LPGCL “for a lump sum consideration in cash of about Rs. 1227 crore”.
The lenders of the LPGCL had said that the transaction value should be constrained to book value of the co-generation power business of Rs. 1,227 crore as on proposed transfer date of March 31, 2017, the company said.
As part of the revaluation of the acquisition consideration of the co-generation power business, the firm said it has also renegotiated the escalation to tariff for power and margin on steam to be purchased from Lalitpur Power Generation Company Ltd.
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“The purchase value of Rs. 1227 crore is favorable to the company on NPV basis,” the filing said, stating that the transaction is expected to be completed by June.
The proposed sale and transfer of co-generation power business will be subject to the approval of supporters, lenders, and all statutory/regulatory authorities.
The company has 14 sugar mills with cane crushing capacity of 1.36 lakh tonnes per day and alcohol refinement capacity of 800-kilo liters per day.
Apart from sugar mills, Shishir Bajaj-led Bajaj group has interests in real estate, personal care products, power, ethanol, and infrastructure.
The group’s power venture contains Bajaj Energy Pvt Ltd, with 450 MW thermal power generation commissioned in 2012 and the Lalitpur Power Generation Co Ltd with a total of 1980 MW thermal power generation capacity.