City News Hyderabad

GMR divests its entire 51 pc stake in Kakinada SEZ Limited

Hyderabad/New Delhi, Aug 13: GMR Infrastructure Limited (GIL) on Friday announced the receipt of total First Tranche Consideration towards the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holdings Limited (GSPHL) of its entire 51 percent stake in Kakinada SEZ Limited (KSEZ) to Aurobindo Realty and Infrastructure Private Limited (ARIPL).
As part of the said transfer of stake of KSEZ and in terms of regulatory requirements, the 74 percent equity stake of Kakinada Gateway Port Limited (“KGPL”) held by KSEZ is also being transferred to Aurobindo Realty.
The total revised Consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs. 2,719 crore and in which Rs. 1692 crore (“First Tranche Consideration”) is received while the balance Rs. 1,027 crore would be received in next 2 to 3 years which is contingent upon certain agreed milestones, the GMR Group said in a release here.
The majority of the divestment proceeds are primarily used to reduce the indebtedness of the Group.
KSEZ is engaged in the business of implementation of a port based multi-product special economic zone project at Kakinada in East Godavari District of Andhra Pradesh and KGPL has the Concession granted by the Government of Andhra Pradesh to set up a greenfield commercial port in Kona Village of East Godavari District.
GMR Group ,a leading global infrastructure conglomerate with unparalleled expertise in designing, building and operating Airports, is the largest private airport operator in Asia and fourth largest globally, with passenger capacity in excess of 178 million annually.
It operates the iconic Delhi Airport, which is the largest and fastest growing airport in India.
It also runs Hyderabad Airport, a pioneering greenfield airport known for several technological innovations.
The company is also operating the architecturally renowned Mactan Cebu International Airport in Cebu, Philippines, in partnership with Megawide.
The group is also developing three major greenfield airport projects across India and Greece, including Goa, Visakhapatnam and Crete, the release added.

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