The plant is valued at Rs 550 crore
Picture for representational purpose
HYDERABAD: City-based construction company IVRCL Limited on Thursday said that it has entered into a deal to sell its stake in a water desalination plant in Chennai to Dubai-based Utico FZC for Rs 150 crore.
The infrastructure company, which had opted for corporate debt restructuring, has been trying to offload its stakes in BOT projects to focus its energies on EPC cash contracts.
Out of Rs 150 crore that Dubai firm would be paying, IVRCL, with 75 per cent stake in the plant, would get Rs 112.5 crore, and the rest of Rs 37.5 crore would go to JV partner Spain-based Abengoa Water S.L.
The plant is valued at Rs 550 crore and the acquirer would also takeover the debt of the project from the current owners. According to a company statement, “The transaction is expected to complete in three months subject to the approvals of Chennai Metropolitan Water Supply and Sewerage Board, lenders and other applicable authorities and satisfaction of certain agreement related conditions.”
( Source : dc correspondent )
Next Story
