The process of selling Infrastructure Leasing & Financial Services (IL&FS) group’s equity stakes in 22 road assets of around 12,000 km has been initiated by the newly appointed IL&FS board.The proposal reportedly includes selling seven operating annuity-based road projects in various parts of India aggregating approximately 1,774 lane km, eight operating toll-based road projects in various parts of India aggregating approximately 6,572 lane km, four under construction road projects in various parts of the country which would aggregate approximately 1,736 lane upon completion.
The proposed sale of stakes will be reportedly carried out as basket or individually or as an undertaking comprising all offered assets and businesses. In the past, private equity firms like Lone Star Funds and Cube Highways had shown interest in buying road assets of IL&FS. However, the newly appointed board of IL&FS is calling for fresh bids as they want to carry out the sale process from the beginning. The board has appointed Arpwood Capital and JM Financial as financial and transaction advisors and Alvarez & Marsal as resolution consultants. The IL&FS board is also working with the ITNL board, IL&FS’ road development arm, and have reportedly decided to publicly solicit expressions of interest to assess the interest for a sale of its stakes in the domestic roads vertical. Besides, the newly appointed board is also looking to sell assets overseas.