Infrastructure Leasing & Financial Services (IL&FS) has received more than a dozen expressions of interest (EOI) for acquiring the troubled financier’s stakes in subsidiaries IL&FS Securities Services Ltd and ISSL Settlement & Transaction Services Ltd, the company said in a press release.
These are the first subsidiaries the company has placed on the block in a bid to pay off debt of over ₹91,000 crore. They have received interest from a mix of banks, private equity firms and other financial services companies, the company said.
“IL&FS has received a strong response to its asset monetization process, initiated a fortnight ago, towards developing a resolution plan for the group,” the company said in the press release.
The board will scrutinize EOIs for eligibility after which “qualifying interested bidders will be invited to review information on the business that would be shared with them, so as to enable them to submit commercial bids,” IL&FS said.
Any binding transaction for the sale of assets, as well as the resulting resolution plan, will be subject to requisite approvals (including from National Company Law Tribunal) before the transactions are concluded. The IL&FS group will shortly be launching the asset monetization process for the sale of many other assets as part of its ongoing resolution process, the release added.
Arpwood Capital and JM Financial are the financial and transaction advisers while Alvarez and Marsal is the restructuring advisor to IL&FS’s resolution process.
On 22 November, Mint had reported that investment banks hired by IL&FS have started reaching out to potential investors to gauge their interest in the assets of the cash-strapped company, particularly road and renewable energy assets.
Source: Mint