Last checked at 27 Apr 2018 13:16
27 April 2018
Infrastructure India plc
("IIP" or the "Company" or, together with its subsidiaries, the "IIP Group")
Asset Sale
Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, is pleased to announce that the IIP Group has entered into an agreement for the sale of Indian Energy Limited (the "Disposal").
Indian Energy Limited ("IEL") is wholly owned by the IIP Group and is an independent power producer that owns and operates wind farms, with 41.3MW of installed capacity at two sites in the states of Karnataka and Tamil Nadu.
On 27 April 2018, IIP's wholly owned subsidiary Indian Energy (Mauritius) Limited entered into a binding conditional share purchase agreement (the "SPA") whereby the IIP Group has agreed the sale, subject to regulatory and other approvals, of its 100% interest in the share capital of IEL to ReNew Power Services Private Limited ("ReNew"). The cash consideration to be received by the IIP Group for the Disposal, to be paid on completion, is INR 364 million (approximately £3.97 million*). As at 30 September 2017, IEL had an unaudited carried value of £9.9 million. The sale has been achieved in a market that favours scale and the consideration reflects the prevailing discount for small portfolios.
The Disposal is expected to complete in approximately 60-90 days and the net proceeds of the Disposal will be used to pay down a proportion of the existing Company's debt.
Greenstone Energy Advisors acted as the exclusive financial advisor to the IIP Group for this transaction.
The Company looks forward to providing shareholders with further asset updates, as appropriate, in due course.
*at the exchange rate of GBP:INR 91.76 on 27 April 2018.
- Ends -
Enquiries:
Infrastructure India plc Sonny Lulla
| www.iiplc.com via Smith & Williamson |
Smith & Williamson Corporate Finance Limited Nominated Adviser & Joint Broker Azhic Basirov / Ben Jeynes
| +44 (0) 20 7131 4000 |
Nplus1 Singer Advisory LLP Joint Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales
| +44 (0) 20 7496 3000 |
The information contained within this announcement is considered to be inside information prior to its release as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.