REG - Infrastructure India - Conditional Disposal

Infrastructure IndiaAnnouncement

04/04/2023 07:00

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RNS Number : 2153V  Infrastructure India plc  04 April 2023

4 April 2023

 

Infrastructure India plc

("IIP" or the "Company" or, together with its subsidiaries, the "Group")

 

Conditional Disposal of Indian Energy Limited

 

Infrastructure India plc, an AIM quoted infrastructure fund investing directly
into assets in India, announces that it has entered into a conditional
agreement ("Agreement") for the disposal of Indian Energy Limited ("IEL") to
FA Power Renewables Private Limited ("FA Power") for a total aggregate
consideration of approximately USD 4.0 million.

 

IEL is an independent power producer that owns and operates wind farms at two
sites in the states of Karnataka and Tamil Nadu, with 41.3 MW of installed
capacity.

 

Further to the Company's announcements of 28 February 2022 and periodically
thereafter, the transaction originally executed with AVSR Constructions
("AVSR") has been cancelled due to AVSR's inability to settle the
consideration due in respect of the transaction. As previously announced, IIP
had commenced discussions with other interested parties for the sale of IEL.

 

FA Power is an independent power producer headquartered in Bangalore. Under
the terms of the Agreement, FA Power shall pay an up-front exclusivity fee of
USD 150,000 to IIP (the "Exclusivity Fee"). The Exclusivity Fee is
non-refundable, save for limited circumstances where IIP does not fulfil its
obligations under the Agreement. The exclusivity period is 60 business days,
or a mutual timeline agreed, for IIP to meet certain conditions precedent in
the Agreement and for a definitive share purchase agreement to be completed.
The transaction contemplates the purchase by FA Power of 100% of the shares of
Indian Energy (Mauritius) Limited, a wholly owned subsidiary of IIP. In
addition, the net current assets, prior to receipt of the exclusivity fee,
will be to IIP's benefit. The total aggregate consideration comprises the
Exclusivity Fee, a further cash payment to IIP of USD 2.279 million prior to
end of the exclusivity period, and IEL's cash and receivables (estimated at c.
USD 1.6 million).

 

The Board believe that the structure of the transaction, being the acquisition
of IIP's wholly owned subsidiary, and a mutual desire to complete the
transaction swiftly, is in the interests of IIP's shareholders. Completion of
the transaction is subject to a number of conditions therefore there can be no
guarantee that the disposal will complete.

 

IEL was valued at £5.5 million in IIP's unaudited interim results for the
period ended 30 September 2022.

 

The Company's creditors remain supportive, and it is expected the
consideration due to the Company from the sale of IEL will be partially
utilised towards settlement of such creditors. As previously announced, the
Board remains in discussions with third parties regarding the sale of assets,
including Distribution Logistics Infrastructure Limited, and further
announcements will be made as and when appropriate.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018 (as amended).

 

 

- Ends -

 

Enquiries:

 Infrastructure India plc                 www.iiplc.com (http://www.iiplc.com/)

 Sonny Lulla                              Via Novella

 Strand Hanson Limited                    +44 (0) 20 7409 3494

 Nominated Adviser

 Richard Johnson / James Dance

 Singer Capital Markets                   +44 (0) 20 7496 3000

 Broker

 James Maxwell - Corporate Finance

 James Waterlow - Investment Fund Sales

 Novella                                  +44 (0) 20 3151 7008

 Financial PR

 Tim Robertson / Safia Colebrook

 

 

 

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