Debt-laden IL&FS says it has completed stake sale in Prime Terminals FZC

Debt-laden Infrastructure Leasing and Financial Services (IL&FS) on Wednesday said it has completed the sale of its 71.84 per cent stake in IL&FS Prime Terminals FZC to VTTI Terminal I BV.

The transaction has resolved the group's outstanding debt to the tune of Rs 757.79 crore, a release said.

IL&FS' stake in IL&FS Prime Terminals FZC (IPTF), a state-of-the art energy storage terminal situated in the UAE's Fujairah, was held through IL&FS Maritime Infrastructure Company (IMICL).

VTTI has acquired the stake from IMICL and other shareholders, the release said.

VTTI will now own 90 per cent of the terminal, while the other 10 per cent will remain with the Fujairah government, the group said.

The sale has also enabled release of a corporate guarantee of USD 110 million issued by IMICL for IPTF, it said.

Recently, the IL&FS board had announced that the group has resolved over Rs 52,000 crore debt while maintaining its overall debt resolution estimate at Rs 61,000 crore.

VTTI is one of the world's leading storage providers for energy and other essential products like chemicals. It provides over 10 million cubic metres of storage capacity across five continents.