Adani clinches JAL takeover as lenders reject back-ended offers
CoC picks`14,535-cr bid with fastest payout; Vedanta, Dalmia trail in vote after Swiss-challenge process
image for illustrative purpose
New Delhi: Adani group has won majority lenders’ vote for take over of debt-laden Jaiprakash Associates as its Rs14,535-crore acquisition proposal included a higher upfront payment than rival bidders, sources said.
A Committee of Creditors voted on resolution plans (acquisition proposals) submitted by suitors including Adani Group, Vedanta Ltd and Dalmia Cement (Bharat). Adani got the maximum 89 per cent votes from creditors, followed by Dalmia Cement (Bharat) and Vedanta Group, they added.
The National Asset Reconstruction Company Ltd (NARCL) had the biggest say in the process as it controls about 86 per cent of the Committee of Creditors’ (CoC) voting share. A small group of lenders, including State Bank of India and ICICI Bank - who together account for less than 3 per cent of CoC’s votes - abstained from voting. Sources said lenders preferred Adani’s plan primarily because it offered a significantly higher upfront payment compared to competing proposals.
The ports-to-energy conglomerate has proposed a total plan value (TPV) of Rs14,535 crore, including Rs6,005 crore upfront and another Rs6,726 crore payable after two years. In net present value terms, the offer is estimated at Rs12,000 crore. Vedanta offered Rs3,800 crore upfront payment and Rs 12,400 crore in deferred payments over five years, taking the TPV of Rs 16,726 crore.
