The debt-laden Infrastructure Leasing and Financial Services (IL&FS) Group on Wednesday said it has completed the sale of its 71.84 per cent stake in IL&FS Prime Terminals FZC (IPTF) to VTTI Terminal I BV.
IL&FS' stake in Prime Terminals FZC was held through IL&FS Maritime Infrastructure Company Limited (IMICL). VTTI has acquired the energy storage terminal situated in UAE's Fujairah from IMICL and other shareholders.
"Sale of IPTF has successfully resolved IL&FS Group debt outstanding to the tune of Rs 757.79 crore through this transaction...Sale has also enabled release of a corporate guarantee of $110 million issued by IMICL for IPTF," IL&FS said in a release.
VTTI will now own 90 per cent of the terminal, while the remaining 10 per cent will remain with the Fujairah government. The acquisition of the 3,33,484-cubic metres terminal will help the company expand its long-established position in the Port of Fujairah.
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First Abu Dhabi Bank, National Bank of Fujairah and State Bank of India were among the key lenders to the company with an outstanding debt of over $80 million, which has now been repaid, IL&FS said.
This marks the second major sale of an IL&FS Group company in a foreign location under its new board. IL&FS had earlier sold its 49 per cent stake in Chinese road project -- Chongqing Yuhe Expressway Co Ltd (CYEC) -- to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund, a fund jointly owned by PingAn Insurance and China Merchants, for Rs 1,035 crore.
The IL&FS Group consists of more than 300 group companies. In August 2019, IL&FS was sent to the bankruptcy courts by the government and was placed under a special management led by banker Uday Kotak.
The new board, in its latest updates, had announced that the Group has resolved over Rs 52,000 crore debt, while maintaining its overall debt resolution estimate at Rs 61,000 crore.
The latest transaction is part of the overall Group resolution estimate of Rs 61,000 crore, the company said.
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