Japanese financial services company ORIX has expressed intent to buy the remaining 51% stake in seven operating wind power plants of the Infrastructure Leasing & Financial Services (IL&FS) Group.

Orix already owns a 49% stake in the wind power plants (SPV). It acquired the stake for just under $33m (Rs23bn) in 2016. The remaining interest is held by IL&FS Wind Energy (IWEL).

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The seven wind SPVs have 874MW total generation capacity and are located across 12 US states.

In a statement, IL&FS said: “This intent to buy 51% stake is in exercise of Orix’s right under the terms of an existing Memorandum of Understanding (MoU) wherein Orix can match the price offered by the highest bidder for purchasing IWEL’s stake in the wind SPVs.”

IWEL is selling its power assets portfolio as part of the overall resolution process initiated by the new board to reduce its debt.

Currently, the sale process is underway for assets in education, funds, domestic roads, thermal power, water infrastructure and technology fields.

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Indian state-owned natural gas company Gail had emerged as the highest bidder for the seven SPVs.

In response to this, the company said in a statement: “Gail’s offer of approximately Rs48bn for 100% of enterprise value contemplated no haircut to the debt of the SPVs, aggregating to approximately Rs37bn.”

“IWEL is selling its power assets portfolio as part of the process initiated by the new board to reduce its debt.”

The sale proceeds received by IWEL will be held in trust and will be distributed to the relevant stakeholders in accordance with the proposed resolution framework filed with the national company law tribunal (NCLAT) by the Union of India.

Completion of SVP’s sale to Orix is subject to the satisfaction of all compliances and approvals required under applicable legal laws.

Completion of the deal is expected by the end of June this year.