INFRASTRUCTURE LEASING and Financial Services (IL&FS) on Thursday introduced the completion of its 49 per cent stake sale in its Chinese street asset Chongqing Yuhe Expressway Co Ltd (CYEC). The stake has been bought to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) Co Ltd (PingAn), a fund collectively owned by PingAn Insurance and China Merchants.
This is the biggest transaction for IL&FS because the sale of its wind vitality belongings to Orix.
IL&FS has acquired Rs 1,035 crore ($141.3 million) in Singapore as a part of this stake sale transaction. The consideration might be used to pay $88 million of Bank of Baroda loans and the steadiness to fulfill IIPL liabilities — together with bondholders underneath IOPL.
IL&FS group held 49 per cent stake in CYEC — by way of its step down Singapore-based subsidiary ITNL International (IIPL). The steadiness 51 per cent stake in CYEC is held by Chongqing Expressway Group.
PingAn had bid at an combination fairness valuation of $281 million for 100 per cent stake. This valued IIPL’s 49 per cent stake at $140 million and PingAn had agreed to take over the Rs 1,600 crore debt in CYEC (as of December 2018). The transaction was accomplished publish receipt of approval from former Supreme Court Justice DK Jain and the National Company Law Tribunal.
ITNL Offshore PTE Ltd (IOPL) and (IIPL) are two Singapore-based subsidiaries of IL&FS Transportation Networks Limited (ITNL), a majority owned subsidiary of IL&FS.
The administration and new board of IL&FS, as a part of its quarterly replace on the progress of ongoing group decision course of in January, had stated it has addressed Rs 32,000 crore of combination debt. The group has maintained its estimates of addressing combination debt of over Rs 56,000 crore by FY22, out of an general debt of over Rs 99,000 crore (as of October 2018).
