Welspun Enterprises, an infrastructure company, has
announced that it is going to divest its entire 15.49 percent stake in Welspun
Energy, an independent power company. The Board of Directors has, subject to
the approval of the members of the company, approved the sale of its entire
investment of 60,493,342 equity shares representing 15.49 percent in the paid
up equity share capital of Welspun Energy, according to a company filing
on the Bombay Stock Exchange.
The stake in Welspun Energy is to be sold to Welshop Trading,
for approximately Rs.2.9 billion (~$42.72 million) plus
contingent consideration, tripling Welspun Enterprise’s investment of Rs.911 million
this transaction, the company continues its journey of consolidation and value
creation for all its stakeholders by enhancing focus on its core businesses.
This deal will further improve our balance sheet and cash reserves, which has
set a stronger platform for future growth,” said Mr.
Sandeep Garg, Managing Director, Welspun Enterprises.
The services of PricewaterhouseCoopers and Ernst & Young
were utilized for this transaction, and Khaitan & Co, was the joint legal
In September 2016, Tata Power Renewable Energy acquired 100
percent shareholding in Welspun Renewables Energy (WREPL) and its subsidiaries
for $1.4 billion (~Rs.93.8 billion).