GMR Infrastructure announces stake sale in transmission projects to Adani Transmission

GMR Energy Limited (GEL), a subsidiary of GMR Infrastructure Limited (GIL), has entered into definitive agreements with Adani Transmission Limited (ATL) wherein GEL has agreed to transfer the interest in Maru Transmission Services Limited (MTSL) and Aravali Transmission Services Limited (ATSL) to ATL.

To be more specific, 74% stake in MTSL and 49% stake in ATSL shall be transferred to ATL with an option to acquire the balance stakes in both the projects. The consummation of transaction is subject to applicable approvals.

The equity consideration ascribed for the transaction involving both the projects is INR1 billion (US$14.8 million). The total value realizable for GEL could be INR2.2 billion (US$29.6 million) considering this equity consideration and the expected upside of up to INR1.2 billion (US$17.8 million) from regulatory proceeds of various appeals of the assets before the Appellate Tribunal for Electricity (APTEL).

Post consummation of the above transaction, the consolidated debt of GMR Group would be reduced. The total debt in the projects as on March 31, 2016 is INR3.24 billion (US$47.9 million)