IL&FS sells 49% stake in Chinese road asset
Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) has completed the sale of 49% stake in its Chinese road asset, the Chongqing Yuhe Expressway Co Ltd (CYEC).
IL&FS sold the stake to China Merchants and PingAn Infrastructure phase 1 Equity Investment Fund (Tianjin) Co Ltd (PingAn), a fund jointly owned by China Merchants and PingAn Insurance, a release from IL&FS Group said.
The buyers have paid Rs 1,035 crore for the shares and have also assumed the debt worth Rs 1,600 crore that is related to this project. This will allow IL&FS to address dues amounting to Rs 2,600 crore that the company stares at currently.
The company told the media that it has received Rs 1,035 crore in Singapore as part of this stake sale transaction. The consideration amount will be used to pay around Rs 642 crore of Bank of Baroda loans and the balance to meet IIPL liabilities, including bondholders under ITNL Offshore PTE Ltd (IOPL), said IL&FS.
IL&FS held a 49% stake in the concerned expressway through its Singapore based subsidiary ITNL International Pte Ltd (UPL), according to media reports.
Earlier, retired Supreme Court justice DK Jain was tasked to supervise the resolution process of IL&FS. He approved the sale of assets back in December 2020, which enabled IL&FS to expedite its plan of generating revenues to pay its debt by selling off various projects.