IL&FS starts process to explore divestment of its interest in road assets

IL&FS board has initiated the process to explore divestment of the group’s interest in road assets and business, the group said in a statement on Monday.

“In order to ascertain market interest, and to examine feasibility of maximization of value in an orderly and transparent manner, the IL&FS Board, acting on behalf of its relevant subsidiaries including IL&FS Transportation Networks (ITNL), has today initiated the process of exploring the divestment of the IL&FS Group’s equity stake/interest in road businesses or an undertaking comprising all the assets,” the statement said.

Il&FS has listed seven operating annuity based road projects, eight operating toll based road projects, four under construction road projects, three other assets and businesses, which are EPC & O&M businesses of ITNL and a Sports Complex in Thiruvananthapuram as assets included in its domestic roads vertical.

The IL&FS Board along with the ITNL Board have decided to publicly solicit Expressions of Interest to assess the interest for a sale of its Stake(s) in the assets under this vertical.

“The Board of IL&FS and ITNL, are cognizant that these steps are required to advance the process for putting together resolution plan for the IL&FS Group, based on market interest and price discovery for various assets,” the statement said.

Arpwood Capital and JM Financial have been appointed as the financial and transaction advisors, along with Alvarez & Marsal as resolution consultants.