Infrastructure India has announced that it has completed the sale of its entire 26 per cent interest in Western MP Infrastructure & Toll Roads Private Limited. The transaction was originally announced on 8 April 2016 and completed on 28 June 2016.
Western MP Infrastructure & Toll Roads operates a 125km toll road in the central Indian state of Madhya Pradesh with a 25-year concession, which commenced in April 2008. Infrastructure India invested in the company in 2008 through its wholly owned subsidiary Roads Infrastructure India, which holds a 26%, interest in the asset. Infrastructure India’s total investment in WMP amounts to £12.5m. The remaining 74% per cent interest in WMP is owned by Essel Infra Projects Limited.
On 7 April 2016, Roads Infrastructure India entered into a binding agreement whereby it agreed the sale, subject to regulatory and other approvals, of its entire 26% interest in Western MP Infrastructure & Toll Roads to an affiliate of Essel Infra Projects for an agreed cash consideration of INR 2,030m (approximately £21.6m at the exchange rate of GBP:INR 93.8 on 7 April 2016). The sale price represents a discount of approximately 13% to the £25.0m value ascribed to Infrastructure India’s interest in Western MP Infrastructure & Toll Roads in its unaudited interim results for the period ended 30 September 2015. The company has said that the net proceeds from the disposal will provide the Group with additional working capital resources.
The Company has also announced that it expects to release its final results, for the year ended 31 March 2016, in late July 2016.
Infrastructure India completes sale of toll road stake : IIP