GMR sells 74pc stake in a highway project to IIF

GMR Group today said it has sold its 74 per cent stake in a 73-km long highway project to India Infrastructure Fund (IIF).
IIF had emerged as the successful bidder for buying the majority stake in GMR Ulundurpet Expressways Pvt Ltd (GUEPL). The bidding had attracted strong interest from several major investors in India and abroad, GMR said in a statement.
"GMR and IIF had signed a definitive agreement on September 17, 2013 and the transaction was concluded on February 17, 2014, upon receipt of all necessary approvals, and realisation of sales proceeds amounting to Rs 220 crore," it said.

GUEPL has been operating a 73 km stretch from Tindivanam to Ulundurpet on NH-45 since July 2009.
"The divestment of this stake releases capital amounting to Rs 198.75 crore and reduces the debt by Rs 450.67 crore from the consolidated balance sheet of GMR Group," it said.
This is the second major divestment in highways portfolio by GMR during the current year.
"The focus of the Group continues to be creating liquidity and reducing our leveraged position, for the benefit of all stake holders," GMR Group CFO Madhu Terdal said.