IL&FS has announced the sale of its 49% stake in its Chinese road asset – Chongqing Yuhe Expressway Company Limited (CYEC).
IL&FS Group holds a 49% stake in CYEC through its Singapore-based subsidiary-ITNL International Pte Ltd (IIPL). The 51% balance in CYEC is with the Chongqing Expressway Group (CEG).
PingAn had bid for a 100% stake at a total equity valuation of $ 281 million. This is a 49% stake of IIPL for about $ 140 million and PIngAn had agreed to take a loan of 1,600 crore in CYEC (as of December 2018).
“IL&FS has received ₹ 1,035 crore ($ 141.3 million) in Singapore as part of this stake sale transaction. The idea is used to pay Bank of Baroda $ 88 million and IIPL liabilities including bondholders under IOPL. Will be done to complete.
“This is the largest transaction for IL and FS since the sale of air power assets to Orix,” he said.
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