GMR Infra loses early gains, rallies 9% on stake sale in airport biz
The stock hit a high of Rs 26.55, up 12.5 per cent, on the BSE
GMR Infrastructure Limited (GIL) on Friday announced that is has signed a definitive agreement to divest its entire 51 per cent in Kakinada Special Economic Zone (KSEZ) to Aurobindo Reality and Infrastructure Private Limited (ARIPL). Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs.2610 crores.
In a regulatory filing, GMR Infrastructure announced the signing of definitive agreements and said, “GMR Infrastructure Limited (GIL) today announced signing of definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding Limited (GSPHL) of its entire 51% stake in Kakinada SEZ Limited (KSEZ) to Aurobindo Realty and Infrastructure Private Limited (ARIPL).”
Advertisement
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.
Advertisement
“Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,610 crores. Out of the total consideration, Rs 1,600 crores would be received on the closing date and balance 1010 crore would be received in next 2 to 3 years which is contingent upon certain agreed milestones,” the filing added.
Proceeds will be used majorly to reduce the indebtedness of GMR Group.
KSEZ is engaged in the business of implementing port based multi-product SEZ project at Kakinada in East Godavari district of Andhra Pradesh, on the east coast of India by the Bay of Bengal.
Andhra Pradesh government granted concession to KGPL to set up greenfield commercial port in Kona village of East Godavari district.
The sale transaction shall be subject to receipt of regulatory and other statutory approvals, the company added.
Shares of GMR Infra were trading 10.14 per cent higher at Rs 23.35 apiece on BSE.
Advertisement
