GMR Infrastructure Limited (GIL) on Friday announced signing of definitive agreements for the sale of its entire 51 per cent stake in Kakinada SEZ Limited (KSEZ) to Aurobindo Realty and Infrastructure Private Limited (ARIPL).
As part of the proposed transfer of stake of KSEZ, the 100 per cent equity stake of Kakinada Gateway Port Limited (KGPL) held by KSEZ would also be transferred to Aurobindo Realty, GMR Infra said in a regulatory statement.
"GMR Infrastructure Limited today announced signing of definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding Limited of its entire 51 per cent stake in Kakinada SEZ Limited to Aurobindo Realty and Infrastructure Private Limited," it said.
The total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,610 crore. Out of the total consideration, Rs 1,600 crore would be received on the closing date and balance Rs 1,010 crore would be received in next 2 to 3 years which is contingent upon certain agreed milestones.
Kakinada SEZ Ltd is engaged in the business of implementation of a port based multi-product special economic zone project at Kakinada, East Godavari District, Andhra Pradesh and KGPL has the concession granted by the Government of Andhra Pradesh to set up a greenfield commercial port in Kona Village of the East Godavari Dist., of Andhra Pradesh.
The sale transaction shall be subject to receipt of regulatory and other statutory approvals.
It noted that proceeds will be used majorly to reduce indebtedness of the group.
Shares of GMR Infra rose surged after the announcement was made. Around 11 30 a.m., its shares on the BSE were trading at Rs 22.75, higher by Re 1.55 or 7.31 per cent from its previous close.
( 313 Words)