REG - Infrastructure India Infrastructure Ind W - Asset Sale

Infrastructure IndiaAnnouncement

28/02/2022 07:00

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RNS Number : 9431C  Infrastructure India plc  28 February 2022

28 February 2022

 

Infrastructure India plc

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

 

Asset Sale

 

Infrastructure India plc, an AIM quoted infrastructure fund investing directly
into assets in India, is pleased to announce that an agreement has been signed
for the conditional sale of Indian Energy (Mauritius) Limited's ("IEL")
assets.

 

IEL, which is a wholly owned subsidiary of IIP, is an independent power
producer that owns and operates wind farms at two sites in the states of
Karnataka and Tamil Nadu, with 41.3MW of installed capacity. IEL holds each
wind farm asset within separate Special Purpose Vehicles ("SPV"), Theni and
Gadag, which are its only assets.

 

IIP has entered into an agreement for the conditional sale of its 100%
interest in each SPV to AVSR Constructions ("AVSR"), which develops, operates
and maintains renewable energy projects in India. The total consideration to
be received by IEL from AVSR for both assets is INR 550 million (approximately
£5.45 million) and the transaction is structured with the separate sale of
each SPV.

 

IEL's sale of each SPV to AVSR is conditional on, inter alia, the relevant SPV
obtaining approval from the State Bank of India to effect the transfer of
shares and the existing pledges over shares to AVSR and the provision of
certain customary documentation. The long stop dates for the sales of Theni
and Gadag are 15 March 2022 and 15 May 2022, respectively.

 

The net proceeds of the sales will be used for Group working capital,
conditional upon IIP's lenders waiving the requirement to pay down a
proportion of the Company's debt, and will provide the Company with a
forecasted positive cash runway until September 2022. The Group continues with
discussions with regards to the partial or complete sale of Distribution
Logistics Infrastructure Limited ("DLI") and further announcements will be
made as and when appropriate.

 

IEL was valued at £10.1 million in IIP's unaudited interim results for the
period ended 30 September 2021.

 

The Board looks forward to providing shareholders with further updates, as
appropriate, in due course.

 

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

 James Spinney / 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 / Fergus Young

 

 

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