LONDON, UK: Infrastructure India plc (IIP) has signed an agreement 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.