IL&FS Group said it has received approval for sale of its Chinese road asset — Chongqing Yuhe Expressway Co. Ltd. (CYEC) — to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) Co. Ltd., a group company of PingAn Insurance (Group) Company of China.
IL&FS Group holds 49% stake in CYEC through its step-down Singapore-based subsidiary ITNL International Pte. Ltd. (IIPL).
The balance 51% is held by Chongqing Expressway Group (CEG).
“PingAn has bid at an aggregate equity valuation of $281 million for 100% stake. This values IIPL’s 49% stake at approximately $138 million (₹1,020 crore). PIngAn will also take over the ₹1,600 crore debt in CYEC (as of October 2018).
“IIPL will now be signing definitive agreements and filing an application with NCLT to complete the transaction,” according to a statement from IL&FS.
“On completion, sale of this asset will address nearly ₹2,600 crore of IL&FS debt,” it said.
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