IL&FS has announced the completion of its 49% stake sale in its Chinese Road Asset — Chongqing Yuhe Expressway Co. Ltd. (CYEC) — to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) Co. Ltd. (PingAn).
IL&FS Group holds 49% in CYEC through its step down Singapore-based subsidiary —ITNL International Pte Ltd. (IIPL). The balance 51% in CYEC is held by Chongqing Expressway Group (CEG).
PingAn had bid at an aggregate equity valuation of $281 million for 100% stake. This values IIPL’s 49% stake at approximately $140 million and PIngAn had agreed to take over the ₹1,600 crore debt in CYEC (as of December 2018).
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“IL&FS has received ₹1,035 crore ($141.3 million) in Singapore as part of this stake sale transaction. The consideration will be used to pay $88 million of Bank of Baroda loans and the balance to meet IIPL liabilities including Bondholders under IOPL,” IL&FS said.
“This is the largest transaction for IL&FS since the sale of the Wind Energy assets to Orix,” it added.