Mumbai, Jan 14 (IANS) Crisis-hit IL&FS has sought expressions of interest (EoI) for the acquisition of IL&FS Environmental & Infrastructure Services Ltd and its subsidiaries.
Calling for bidders, IL&FS in a notification on Tuesday said that it has received a binding offer to buyout IEISL which would have to go through a bidding process.
“Infrastructure Leasing and Financial Services Ltd (IL&FS), the promoter of IEISL has received a binding offer from a prospective buyer for acquisition of 100 per cent stake in IEISL, which will be subject to a bid process akin to the ‘Swiss Challenge Method’. Expressions of Interest are invited from potential bidders for the prospective transaction,” the notification inviting EoIs said.
IEISL is engaged in integrated waste management, which includes collection and transportation, processing and disposal, waste to energy and construction and demolition segments with a total waste handling capacity of around 14,500 tonnes per day, the notification added.
The IL&FS notification said that interested and eligible parties can submit their EoI by 5 p.m. on January 25.
It further said IL&FS reserves the right to suspend, modify or terminate the potential transaction at any time without providing any reason or incurring any liability to a party.
As part of the crisis-ridden IL&FS Group’s debt resolution process, the group along with its subsidiaries and group companies have taken to monetisation of several assets since it defaulted on its loans in 2018.
Recently, in its 32nd Annual General Meeting (AGM) on December 31, IL&FS Group Chairman Uday Kotak said that the ongoing resolution process of the debt-ridden group is a “test case” for group-wide resolution of stressed assets in the country.
Resolution, restructuring and recovery formed the three vital pillars of the strategy adopted by the new board, he added.
In October 2018 the government had removed the sitting board members and installed a new board headed by Uday Kotak after the group defaulted on its loans.