Bajaj Hindusthan SugarBSE -0.21 % Ltd plans to sell its co-generation power business to its group company Lalitpur Power Generation Company Ltd (LPGCL) for about Rs 1,800 crore.
The company’s board today “considered approval of sale and transfer of co-generation power business of aggregating capacity of 449 MW located at 14 locations to LPGCL for a lump sum consideration in cash of about Rs 1,800 crore as a going concern on slump sale basis in accordance with the business transfer agreement to be entered into with LPGCL.”
In a filing to BSE, the company said: “Entire amount of cash consideration is proposed to be utilised by Bajaj HindusthanBSE -0.21 % Sugar Ltd towards advance repayment of its existing term debt.
The proposed sale and transfer of co-gen power business will be subject to approval of members, lenders, and all other statutory/regulatory authorities,”
Bajaj Hindusthan has 14 sugar mills with cane crushing capacity of 1.36 lakh tonnes per day and alcohol distillation capacity of 800-kilo litres per day. It has posted a standalone net loss of Rs 137.71 crore for the second quarter of the current fiscal on high finance cost compared to Rs 282.72 crore loss in the July-September period of last fiscal.
Besides sugar, Shishir Bajaj-led Bajaj group has interests in power, ethanol, real estate, personal care products and infrastructure.
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Source: Economic Times
