Infra.india Regulatory News (IIP)

Infrastructure India plc

Acquisition of VLMS stake receives necessary regulatory approval

On 3 March 2011, Infrastructure India, an investment company focused on Indian infrastructure assets, announced that it had completed the acquisition of a 37.39 per cent. interest in Vikram Logistic & Maritime Services Private Limited ("VLMS"), an Indian transportation and container infrastructure company.

At the time the Group's initial investment in VLMS completed, it was also announced that it had agreed to acquire almost all of the outstanding balance of VLMS shares which it did not own (the "Acquisition"). The Acquisition was subject to, inter alia, obtaining certain Indian regulatory approvals, including the approval of the Foreign Investment Promotion Board (the "FIPB").

As announced on 8 June 2011, the FIPB initially refused to approve the Acquisition and the application for FIPB approval was subsequently re-submitted.

By way of a press release dated 17 August 2011, the FIPB has announced that it has now approved the Acquisition.

The transaction remains subject to certain conditions to completion, principally the acquisition by VLMS (or associated parties) of two parcels of land in India. The Board understands that these land acquisitions and any remaining conditions should be fulfilled during September 2011 whereupon the Group intends to complete the VLMS acquisition as soon as possible thereafter.

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