Mumbai, Nov 24, : The IL&FS Group completed the sale of its 71.84 percent stake in IL&FS Prime Terminals FZC to VTTI Terminal IBV.(VTT I). This transaction has resulted in the sale of the IPTF, which successfully resolved the outstanding debt of IL&FS Group to the tune Rs 757.79 Crore.
The IL&FS stake at Prime Terminals FZC was owned by IL&FS Maritime Infrastructure Company Ltd.(IMICL).VTTI purchased this state-of the art energy storage terminal in Fujairah, UAE from IMICL and other shareholders.
VTTI will now have 90 percent of the terminal while the Fujairah government will retain the remaining 10%.The company will be able to increase its long-standing position in the Port at Fujairah with the acquisition of the terminal measuring 333,484 square metres.
IMICL has released a $110 million corporate guarantee as a result of the sale.
The company’s key lenders were First Abu Dhabi Bank, National Bank of Fujairah and the State Bank of India.
These three banks had outstanding debts of more than $80 million, which was fully repaid.
The sale of IPTF marks the second major sale in a foreign location of an IL&FS Group business.
This was completed in accordance to the Resolution Framework Report approved by Justice (retd), D.K.Jain, with the approval from the NCLT’s Mumbai Bench.
IL&FS had previously sold its 49 percent stake in Chinese Road Project – Chongqing Yuhe Expressway Co Ltd, (CYEC), to China Merchants.
Pingan Infrastructure Phase 1 Equity Investment Fund was jointly owned by Pingan Insurance.It cost Rs 1,035 crore ($ 141 millions).
Pingan had offered $281 million to acquire this asset.The company also agreed to assume Rs 1,600 crore of the CYEC’s debt.
In its most recent updates, the new Board announced that the Group had resolved more than Rs 52,000 crore of its debt, while maintaining its overall debt resolution estimate of Rs 61,000 crore.This transaction is part of the overall Group resolution estimate at Rs 61,000 crore.
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