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GMR Highways Ltd and GMR Infrastructure Ltd have signed a share purchase agreement with joint venture partners to divest its 51 per cent stake in GMR OSE Hungund Hospet Highways Pvt Ltd.
The deal will help GMR reduce its debt by ₹1077.97 crore and create liquidity of ₹85 crore.
The GOHHHPL special purpose vehicle operates Hungund Hospet section of National Highway No.13, a 99-km project in Karnataka.
The project was bagged by the GMR OSE consortium in 2010 under the design, build, finance, operate and transfer basis.
The sale is envisaged in two tranches.
Under Tranche I, joint venture partners have bought 14.99 per cent stake of the project from GMR Group.
Tranche II will be completed post approvals from NHAI, lenders of GOHHHPL and other closing conditions required for such transactions. While the sale consideration is ₹85 crore, it is 1:1 times book value of investment.
Grandhi Kiran Kumar, Corporate Chairman, GMR Group, in a statement said: “This transaction signifies about the GMR Group’s commitment and ability to successfully implement its Asset-Light-Asset-Right strategy under challenging market conditions.”
“We continue to focus on creating liquidity and reducing our leveraged position, as part of the strategy of churning of assets. Divestment of this asset will also reduce the debt as on March 22, 2016, by about ₹1,078 crore on a fully consolidated basis. The sale consideration of ₹85 crore will enhance the liquidity,” he said.
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