GMR sells 51pc in high­way project to JV part­ners to cut debt

The Pak Banker - - COMPANIES/BOSS -

MUM­BAI: GMR In­fra­struc­ture Ltd on Fri­day said it had agreed to sell a 51% eq­uity stake in its 99km high­way project in Kar­nataka to its joint ven­ture part­ners. The com­pany will re­ceive Rs.85 crore from the trans­ac­tion that will also re­move Rs.1,077.94 crore as­so­ci­ated with the project off GMR In­fra­struc­ture's books, the com­pany said in a state­ment.

The project, be­ing run un­der the spe­cial pur­pose ve­hi­cle (SPV) GMR OSE Hun­gund Hospet High­ways Pvt. Ltd (GOHHHPL), is jointly owned by a con­sor­tium of GMR and Ori­en­tal Struc­tural En­gi­neers Ltd. The stake sale in GOHHHPL will take place in two tranches, GMR said. Un­der the first tranche, the joint ven­ture part­ners have al­ready bought a 14.99% stake, GMR said. The re­main­ing will be bought af­ter ap­provals from the Na­tional High­ways Au­thor­ity of In­dia (NHAI) and lenders to the project.

GMR will fo­cus on creat­ing liq­uid­ity and re­duc­ing its lever­aged po­si­tion as part of its strat­egy of churn­ing of as­sets, GMR said. GOHHHPL op­er­ates the Hun­gund Hospet sec­tion of Na­tional High­way No. 13. The project was won by GMR OSE Con­sor­tium in 2010 on a de­sign, build, finance, op­er­ate and trans­fer ba­sis. The project is un­der GMR's sub­sidiary GMR High­ways Ltd.

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