IL&FS unit to sell stake in China asset to repay debts

ITNL International Pte Ltd, the international subsidiary of IL&FS Transport Networks, has invited Expression of Interests (EoI) for acquisition of its 49 per cent stake in China's Chongqing Yuhe Expressway Company Ltd.

ITNL International is incorporated in Singapore and is a wholly-owned subsidiary of IL&FS Transportation Networks Ltd, which in turn is a subsidiary of the cash-strapped Infrastructure Leasing & Financial Services (IL&FS).

Chongqing Yuhe Expressway Company Ltd currently holds a concession for a toll-based expressway of approximately 58.72 km in China mainland, over which it has the right to collect toll from users, an IL&FS statement said on Friday.

"Approximately 13.25 years of the term of the current concession remain as of 31 March 2019, and Chongqing Yuhe Expressway Company Ltd has rights to collect toll from users and subsidies from the Chinese Government for the balance period of the concession," it said.

Consummation of transaction will be subject to requisite approvals, IL&FS said. UBS AG's Hong Kong Branch would assist in the potential transaction, according to the company.

IL&FS is implementing various asset monetisation programmes to recover what it can and repay debt including the sale of its securities business, renewable energy assets, roads portfolio and EPC capabilities and stakes in foreign ventures.

Currently, the issue of IL&FS is in the insolvency process and the case is going on in the National Company Law Appellate Tribunal (NCLAT), with next hearing scheduled for April 29.

--IANS

rrb/sn/nir