GMR divests stake in road project in Karnataka

Two GMR group firms have signed a share purchase agreement with joint venture partners to divest a 51 percent stake in GMR OSE Hungund Hospet Highways Pvt. Ltd (GOHHHPL), a BSE filing said on Thursday.

"GMR Highways and GMR Infrastructure have signed a share purchase agreement with its joint venture partners to divest its 51 percent equity stake in GMR OSE Hungund Hospet Highways Pvt Ltd," according to the filing.

GOHHHPL operates over 99 km of the National Highway-13 in Karnataka. GMR OSE Consortium won the project in 2010 on design, build, finance, operate and transfer basis.

The joint venture partners have bought 14.99 percent stake in the project from the group in the first tranche of sale. The second tranche will be completed post approvals from the National Highways Authority of India, lenders of GOHHHPL, and other closing conditions customary to such transactions, the company said.

"Overall consideration for the sale is about Rs.85 crore. The sale consideration is about 1.1 times of book value of investment," the filing by GMR Infrastructure said.

Group's corporate chairman Grandhi Kirankumar said: "Divestment of this asset will reduce the debt as on March 22 by about Rs.1,077.97 crore on a fully consolidated basis and the said sale consideration of Rs.85 crore will enhance the liquidity."