IVRCL to sell stake in arms to Singapore firm for Rs 726.18 cr
Infrastructure company IVRCL today 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 agreements 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 subsidiary of IVRCL, the value of shares which is Rs 383.23 crore “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 yesterday and the expected timeframe date for completion of the sale/disposal is before September quarter 2018, IVRCL said. 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 on 48.5 km Kumarapalayam-Chengapalli stretch on NH 544, STL operates on 53.5 km stretch on the same highway between Salem and Kumarapalayam in Tamil Nadu. Cube Highways and Infrastructure Pte Ltd (Cube Highways) is a Singapore-based company investing in road and highway projects.