IL&FS finalizes the sale of its stake in a road asset in China; agreement to settle the debt of Rs 2,600 cr
Heavily indebted infrastructure finance and leasing (IL&FS) on Thursday announced the completion of the sale of 49% of its Chinese road asset – Chongqing Yuhe Expressway Co Ltd (CYEC).
The stake is sold to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) Co Ltd (PingAn), a fund jointly owned by PingAn Insurance and China Merchants, according to an IL&FS group statement.
The transaction will help the group to cope with Rs 2,600 crore of its global debt of nearly Rs 99,000 crore (as of October 2018).
The group, through its subsidiary based in Singapore, ITNL International Pte Ltd (IIPL), held 49% of the capital of CYEC. The remaining 51 percent stake in CYEC is held by Chongqing Expressway Group (CEG).
“IL&FS has duly received Rs 1,035 crore ($ 141.3 million) in Singapore as part of this stake sale transaction,” the group said in the statement. The proceeds will be used to pay off around $ 88 million in Bank of Baroda loans and the balance to honor IIIP’s commitments – including bondholders under ITNL Offshore PTE Ltd (IOPL), he said. indicated.
The group said PingAn had bid for an aggregate stock valuation of $ 281 million for 100 percent of the capital. “This values IIPL’s 49% stake at around $ 140 million and PingAn has agreed to take over the debt of Rs 1,600 crore to CYEC (as of December 2018),” he said.
The transaction was finalized after receiving approval from Supreme Court Justice (retired) DK Jain, who oversees the group’s resolution process, and the National Company Law Tribunal (NCLT). CYEC owns and operates a concession for an approximately 58.72 km toll highway in mainland China through 2032. The company has the right to collect user tolls and concessions from the Chinese government for the remainder of the term. concession.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)