GAIL Highest Bidder For IL&FS Wind Assets With Rs 4,800 Crore Offer

GAIL (India) Ltd is set to complete the purchase seven wind power plants from debt-ridden Infrastructure Leasing and Financial Services (IL&FS), after offering Rs 4,800 crore ($689.3 million), IL&FS said on Monday.

The deal is expected to close within three weeks.

GAIL's offer contemplates no hair-cut to the debt of the plants, which is around Rs 3,700 crore, IL&FS said.

Last year, sources told Reuters that GAIL would not consider buying the entire wind energy assets of IL&FS unless offered at a steep discount.

The government replaced IL&FS' entire board earlier this month after recent defaults on some of its debt obligations triggered sharp declines in stock and debt markets, leading to fears about contagion in the financial sector.

IL&FS has initiated the sale several assets, including road and education, to pay off its debt.

($1 = Rs 69.63)