Jindal Steel and Power Ltd (JSPL) is likely to sell a significant stake in its Oman unit, Jindal Shadeed Iron and Steel Llc, to meet debt repayment obligations, said two people aware of the development.

“JSPL’s lenders have recently concluded a valuation exercise of the Oman operations and a sell side mandate is expected soon,” one of the two people quoted above said, requesting anonymity. “The company is keen to divest a large minority stake for now but will eventually sell out completely if there is a good offer, and there have been some informal talks with a sovereign fund.”

The valuation was done by an independent adviser hired by JSPL’s foreign lenders in June to restructure part of the company’s loans, the second person said, also requesting anonymity.

Source: Livemint