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(Alliance News) - Infrastructure India PLC on Tuesday said it started discussions with other potential bidders for the sale of its subsidiary Indian Energy Ltd, as current purchaser AVSR Constructions delayed the sale for the third time.
Infrastructure India is an Isle of Man-based, India-focused company, which invests in infrastructure assets in the country's energy and transport sectors.
Indian Energy is a power producer that owns and operates wind farms at two sites in Karnataka and Tamil Nadu in India. It holds each wind farm asset within separate special purpose vehicles, which are its only assets.
Following a request from AVSR for additional time to complete the transaction, Infrastructure India now expects proceeds from the sale to be received in December.
However, it added that it had expressed concern to AVSR over the continued delays, and has opened dialogue with other interested parties.
In February, Infrastructure India entered a deal to sell its 100% interest in each special purpose vehicle asset to AVSR Constructions, which develops and operates renewable energy projects in India. The total consideration for the assets is INR550 million, which is around GBP5.6 million.
In September, AVSR delayed the sale by a month due to administrative delays in finalising the transaction. The company then postponed further to November.
The proceeds from the sale will be used for Infrastructure India's working capital, conditional upon its lenders waiving the requirement to pay down a proportion of the company's debt.
Infrastructure India remains in discussions with third parties regarding the sale of further assets, including Distribution Logistics Infrastructure Ltd.
Infrastructure India shares were up 39% to 0.49 pence on Tuesday morning in London.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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