Reliance Infrastructure To Complete Sale Of Delhi-Agra Toll Road By August-End
Reliance Infrastructure Ltd. will sell its entire stake in the Delhi-Agra Toll Road project to Singapore-based Cube Highways by the end of August 2019, the Anil Ambani group firm said in an exchange filing on Thursday.
Reliance Infrastructure had signed a binding share purchase agreement with Cube Highways for its 100 percent stake in Delhi-Agra toll road for Rs 3,600 crore.
"Reliance Infrastructure will receive enterprise value of Rs 3,600 crore, including equity of up to Rs 1,700 crore," the company said in a regulatory filing, adding that it will utilise 100 percent of the proceeds only for debt reduction. With this transaction, Reliance Infrastructure’s debt will reduce by over 25 percent to less than Rs 5,000 crore.
Cube Highways and Infrastructure III Pte Ltd. is a Singapore-based company formed by global infrastructure fund I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority.
Last week, India Ratings Ltd. downgraded Reliance Infrastructure's long-term issuer rating to 'D-Issuer Not Cooperating'.
The downgrade came barely a week after the Anil Ambani-led firm's auditors raised red flags over its financial results as well as "significant doubt" over the group's ability to continue as a going concern.
Reliance Infrastructure had reported consolidated net loss of Rs 3,301 crore for the quarter ended March 31. The company had recorded a profit of Rs 133.66 crore in the year-ago period. In 2018-19, it incurred loss of Rs 2,426.82 crore. It had reported a profit of Rs 1,255.50 crore in 2017-18.