Firm to offload stake in two subsidiaries for Rs 726.18 cr
New Delhi : Infrastructure developer IVRCL Ltd, on Wednesday, said it has entered into a pact with Singapore-based Cube Highways and Infrastructure to sell its entire stake in two subsidiaries for Rs 726.18 crore. “The company has entered into a share purchase agreement with Cube Highways and Infrastructure Pte Ltd for sale of the entire stake in two subsidiary companies viz. Salem Tollways Ltd (STL) and Kumarapalayam Tollways Ltd (KTL),” IVRCL said in a statement.
“The value of IVRCL’s stake in STL…shall be computed on the basis of enterprise value of Rs 342.95 crore,” it said. For Kumarapalayam Tollways Ltd (KTL), the second IVRCL subsidiary, the value of shares which is Rs 383.23 crore is “subject to adjustments on account of financial indebtedness and working capital and expenses for upcoming major maintenance of each of the project,” the company added. The agreement was signed on Tuesday and the expected timeframe for completion of the sale/disposal is before the September-quarter 2018, IVRCL added. However, the completion of transaction and payment of consideration is contingent upon fulfilment of certain customary approvals from all concerned authorities and lenders of STL, KTL and IVRCL.
While, KTL operates the 48.5 km Kumarapalayam-Chengapalli stretch on NH 544, STL operates the 53.5 km stretch on the same highway between Salem and Kumarapalayam, all in Tamil Nadu. Cube Highways and Infrastructure Pte Ltd is a Singapore-based company that invests in road and highway projects.
The Hyderabad-based IVRCL Ltd’s stock finished 1.94% higher at Rs 4.21, per unit, on the Bombay Stock Exchange (BSE) on Thursday. That gives the firm a market capitalisation of around Rs 329 crore, according to stock market data.
