Reading Time: 2 minutes
Infrastructure India plc has announced that it has entered into a conditional agreement for the sale of Indian Energy Limited (IEL) to FA Power Renewables Private Limited for an aggregate consideration of approximately USD 4.0 million. The agreement is subject to several conditions, and there is no guarantee that the transaction will complete.
IEL is an independent power producer with wind farms located in Karnataka and Tamil Nadu, with a combined installed capacity of 41.3 MW. The sale of IEL is part of Infrastructure India’s strategy to dispose of non-core assets and focus on its core infrastructure businesses.
Under the terms of the agreement, FA Power will pay an exclusivity fee of USD 150,000 to IIP and will purchase 100% of the shares of Indian Energy (Mauritius) Limited, a wholly-owned subsidiary of IIP. The transaction also contemplates the purchase of IEL’s net current assets, prior to receipt of the exclusivity fee, estimated at approximately USD 1.6 million.
The Board of Infrastructure India believes that the structure of the transaction and a mutual desire to complete the sale swiftly is in the interests of its shareholders. The proceeds from the sale of IEL are expected to be partially utilised towards the settlement of the company’s creditors.
The sale of IEL follows the cancellation of a transaction originally executed with AVSR Constructions, as announced by the company in February 2022. IIP has been in discussions with other interested parties for the sale of IEL, and the transaction with FA Power marks a significant step forward in its efforts to dispose of non-core assets.
Infrastructure India’s unaudited interim results for the period ended 30 September 2022 valued IEL at £5.5 million. The company’s creditors remain supportive, and it is expected that the consideration due from the sale of IEL will help towards the settlement of its liabilities.
The announcement constitutes inside information under the Market Abuse Regulation, as stipulated under the Market Abuse Regulation (EU) No. 596/2014, and is part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended). Further announcements regarding the sale of assets, including Distribution Logistics Infrastructure Limited, will be made when appropriate.
, an AIM-quoted infrastructure fund focused on India, has announced that it has entered into a conditional agreement for the sale of Indian Energy Limited (IEL) to FA Power Renewables Private Limited. The total aggregate consideration for the sale is approximately USD 4.0 million, which includes an exclusivity fee of USD 150,000 paid by FA Power to IIP. IEL is an independent power producer with wind farms in Karnataka and Tamil Nadu, with an installed capacity of 41.3 MW.){kind=link}