The newly-appointed IL&FS board has initiated the process of selling IL&FS group’s equity stakes in 22 road assets of around 12,000 km on Monday.
The proposal includes selling seven operating annuity-based road projects in various parts of India aggregating approximately 1,774 lane km, eight operating toll-based road projects of 6,572 lane km and four under-construction projects of 1,736 lane km upon completion. It also includes three other assets and businesses which are EPC & O&M businesses of IL&FS Transportation Networks Limited and a Sports Complex in Thiruvananthapuram.
“The proposed sale of stakes held by IL&FS group in these assets may be carried out as a basket or individually or as an undertaking comprising all offered assets and businesses,”
IL&FS said. Private equity firms Lone Star Funds and Cube Highways had in the past shown interest in buying road assets of IL&FS. The new board wants to carry out the sale process from the beginning and is calling for fresh bids. IL&FS’ roads development arm, IL&FS Transportation Networks (ITNL), has the largest portfolio of highways built via a public, private partnership (PPP), with 28 build, operate, transfer (BOT) projects. The board has appointed Arpwood Capital and JM Financial as financial & transaction advisors and Alvarez & Marsal as resolution consultants. The IL&FS board, working with the ITNL board, decided to solicit expressions of interest to assess interest for a sale of its stakes in the domestic roads vertical. The company plans to divest stakes in subsidiaries including IL&FS Education, IL&FS Technologies, ONGC NSE -0.78 % Tripura Power Company and IL&FS Paradip Refinery Water. The process to sell wind energy and securities business is underway. The board is looking to sell assets overseas. Elsamex, acquired by ITNL in 2008, received a binding offer from a buyer for an asset namely A4 Asset, which is a JV with a concession agreement for a road project in Madrid.
Source: Economic Times