Gammon Infra to Divest 9 Projects to BIF India Holdings

New Delhi: Gammon Infrastructure on Friday said it will divest nine of its project companies to BIF India Holdings Pte.

"The company's step down subsidiary Gammon Infrastructure Projects Ltd (GIPL) has today signed a share purchase agreement divesting nine of its project companies (6 road and 3 power) to BIF India Holding Pte jointly held by Brookfield Asset Management and its affiliates and Core Infrastructure India Fund Pte Ltd," Gammon Infrastructure said in a filing to the BSE.

"Aggregate cash inflows for GIPL on the account of divestment would be approx Rs 563 crore subject to closing adjustments and an additional cash inflow of up to Rs 100 crore may be realised by GIPL upon crystallisation of certain milestones in future."

The projects divested by GIPL include Sikkim Hydro Power Venture Ltd, Andhra Expressway Ltd, Rajahmundry Expressway Ltd, Kosi Bridge Infrastructure Ltd and Gorakhpur Infrastructure Co Ltd.

All of these companies are 100 per cent subsidiary of GIPL.

GIPL has also divested its stake in Mumbai Nashik Expressway Ltd. The company held approximately 80 per cent stake in the firm.

Among key terms of transaction, the company said the consideration towards equity comprises of cash consideration of approximately Rs 192 crore and a waiver of advance of Rs 285 crore.

GIPL's board has also recommended divestment of 50 per cent shareholding of Vizag Seaport Private Ltd for a consideration of Rs 62.5 crore in favour of Latin Infrastructure Projects Ltd, an affiliate of an existing shareholder, Lastin Group.