DLF to sell Karnataka wind turbine unit to Goyal MG Gases for $5M
DLF Ltd, the country’s largest real estate player by market value, has entered into a definitive business transfer agreement with Delhi-based industrial gas producer Goyal MG Gases Pvt Ltd for sale of 11.2 MW capacity wind turbines situated in Karnataka, for around Rs 29.52 crore ($4.93 million) by way of slump sale, as per a stock market disclosure.
This would mark the firm’s exit from non-core renewable energy business at a time when it is struggling to meet debt reduction targets through such asset sales. The firm recently missed a second deadline to complete the previously announced sale of its hospitality business housed under Aman Resorts in a management buyout led by its founder Adrian Zecha.
DLF has previously announced sale of three assets under its wind and renewable energy portfolio, including 150 MW wind turbines in Kutch to BLP Vayu (Project 1) Pvt Ltd, a subsidiary of Bharat Light & Power, which was completed a few days ago for a net realisation of Rs 325.38 crore.
It also struck a deal to sell a 34.5 MW wind mill in Tamil Nadu to Tulip Renewable Powertech Pvt Ltd (Tulip) for Rs 188.70 crore and the 33 MW Rajasthan wind mill to Violet Green Power Pvt. Ltd for Rs 52.20 crore. The company did not officially specify who the promoters of these two entities are but they are learnt to be under Leap Green Energy, a privately held firm promoted by Indian Formula One racer Narain Karthikeyan and his family. Leap Green Energy is backed by JP Morgan.
The wind turbines in Karnataka are the last remaining asset in its energy portfolio. The transaction is subject to regulatory approvals and adjustment for net working capital; and expected to be consummated by December 31, 2013, it said on Friday.
Shares of DLF last changed hands at Rs 176.95 a unit, down 0.76 per cent on the BSE in a strong Mumbai market on Friday.
As per the agreement, the entire unit, including related assets and liabilities along with relevant long-term loans, would be sold to Goyal MG Gases.
Goyal MG Gases manufactures and supplies industrial gases, process gases, shielding gases and specialty gases. The firm’s website says it has several wind mills that are generating and exporting wind power to state electricity grids, though no separate information is available on the same. It is also engaged in construction, erection and commissioning of mini hydroelectric power projects on a build-own-operate-transfer basis.
(Edited by Joby Puthuparampil Johnson)
In a welcome move, the Ministry of Corporate Affairs on 19 July 2016 issued a notification amending the Compan
Goyal MG Gases Pvt. Ltd. is manufacturer and supplier of industrial gases. Its products include oxygen, dissolved acetylene, medical oxygen, zero air, nitrogen, argon, dry ice, hydrogen, carbon dioxide, helium, gaseous and liquid gases. The firm caters to the need of steel manufacturing industry, health care, food and beverages, pharmaceutical, metal fabrication, petrochemical and vegetable oil. The company was founded in 1973 and is based in New Delhi, India.