GMR Infrastructure Limited has 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 per cent 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 per cent equity stake of Kakinada Gateway Port Limited (“KGPL”) held by KSEZ is also being transferred to Aurobindo Realty.
Total revised consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,719 crore. Out of the total consideration, Rs 1,692 crores is received and balance Rs 1,027 crore would be received in next 2 to 3 years which is contingent upon certain agreed milestones.
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, East Godavari District, Andhra Pradesh and KGPL has the concession granted by the Govt of Andhra Pradesh to set up a greenfield commercial port in Kona Village of the East Godavari Dist. of Andhra Pradesh.