You are here: Home » Companies » News
Business Standard

Debt-laden IL&FS announces completion of 49% stake sale in China road asset

The transaction will help the group address Rs 2,600 crore of its overall debt of close to Rs 99,000 crore (as of October 2018)

IL&FS | IL&FS group | China

Press Trust of India  |  Mumbai 

Infrastructure Leasing and Financial Services

Debt-laden (IL&FS) on Thursday announced completion of 49 per cent stake sale in its Chinese road asset - Chongqing Yuhe Expressway Co Ltd (CYEC).

The stake is sold to Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) Co Ltd (PingAn), a fund jointly owned by PingAn Insurance and Merchants, a release from Group said.

The transaction will help the group address Rs 2,600 crore of its overall debt of close to Rs 99,000 crore (as of October 2018).

The group, through its step-down Singapore-based subsidiary, ITNL International Pte Ltd (IIPL), was holding 49 per cent stake in CYEC. The balance 51 per cent stake in CYEC is held by Chongqing Expressway Group (CEG).

has duly received Rs 1,035 crore (USD 141.3 million) in Singapore as part of this stake sale transaction, the group said in the release.

The amount will be used to pay around USD 88 million of Bank of Baroda loans and the balance to meet IIPL liabilities - including bondholders under ITNL Offshore PTE Ltd (IOPL), it said.

The group said PingAn had bid at an aggregate equity valuation of USD 281 million for 100 per cent stake.

This values IIPL's 49 per cent stake at around USD 140 million and PIngAn has agreed to take over the Rs 1,600 crore debt in CYEC (as of December 2018), it said.

The transaction was completed post receipt of approval from (Retd) Supreme Court Justice DK Jain, who is overseeing the resolution process of the group, and National Company Law Tribunal (NCLT).

CYEC holds and operates a concession for a toll based expressway of approximately 58.72 km in Mainland till 2032.

The company has the right to collect toll from users and concessions from Chinese Government for the remaining period of concession term.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, April 01 2021. 18:55 IST