Companies

IL&FS completes stake sale in Prime Terminals FZC

Our Bureau Mumbai | Updated on November 24, 2021

IL&FS stake in Prime Terminals FZC was held through IL&FS Maritime Infrastructure Company Limited   -  REUTERS

Sale of Prime Terminals FZC stake has resolved IL&FS Group debt outstanding of ₹758 crore

The IL&FS Group has completed the sale of its 71.84 per cent stake in IL&FS Prime Terminals FZC to VTTI Terminal I BV VTTI.

Sale of IPTF has successfully resolved IL&FS Group debt outstanding to the tune of ₹757.79 crore through this transaction.

IL&FS stake in Prime Terminals FZC was held through IL&FS Maritime Infrastructure Company Limited. VTTI has acquired the energy storage terminal situated in Fujairah from IMICL and other shareholders.

VTTI will now own 90 per cent of the terminal, while the other 10 per cent will remain with the Fujairah government. This acquisition of the 333,484 m3 terminal will help the company expand its long-established position in the Port of Fujairah.

Also read: New management of IL&FS addresses ₹52,200 cr of debt

Sale has also enabled release of a corporate guarantee of $110 million issued by IMICL for IPTF.

Key lenders to IPTF

Key lenders to the company were First Abu Dhabi Bank, National Bank of Fujairah, State Bank of India — that had debt outstanding of over $80 million — which has been fully repaid.

The sale of IPTF marks the second major sale of an IL&FS Group company in a foreign location under the new board and this has been completed in accordance with the approved Resolution Framework Report, under the supervision of Justice (Retd.) D.K. Jain and with the approval of NCLT, Mumbai Bench.

IL&FS’ earlier sale

IL&FS has earlier sold its 49 per cent stake in Chinese Road Project – Chongqing Yuhe Expressway Co Ltd (CYEC) – to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund, a fund jointly owned by PingAn Insurance and China Merchants – for ₹1,035 crore ($141 million). PingAn had bid at an aggregate valuation of $281 million for this asset and agreed to take over ₹ 1,600-crore debt in CYEC.

Also read: SRBC & Co LLP resigns as the auditor of IL&FS

The new board, in its latest updates, had announced that the Group has resolved over ₹ 52,000-crore debt while maintaining its overall debt resolution estimate at ₹61,000 crore. This transaction forms part of the overall group resolution estimate of ₹ 61,000 crore.

Published on November 24, 2021

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