GMR sells KSEZ stake for 2,610 crore

Hyderabad: In a major development, GMR Infrastructure on Friday said it signed definitive agreements to divest its entire 51 per cent stake in Kakinada SEZ Ltd to Aurobindo Realty for Rs 2,610 crore.

In a statement, GMR Infrastructure announced the signing of definitive agreements for the sale of entire 51 per cent stake owned by its wholly-owned subsidiary GMR SEZ and Port Holding Ltd (GSPHL) in Kakinada SEZ Ltd (KSEZ) to Aurobindo Realty and Infrastructure Pvt Ltd. "As part of the proposed transfer of stake of KSEZ, the 100 per cent equity stake of Kakinada Gateway Port Ltd (KGPL) held by KSEZ would also be transferred to Aurobindo Realty. Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,610 crore," the company said.

GMR Infra said out of the total consideration, Rs 1,600 crore would be received on the closing date and balance Rs 1,010 crore would be received in next two to three years, which is contingent upon certain agreed milestones. Proceeds will be used majorly to reduce the indebtedness of GMR 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 Andhra Pradesh government to set up a greenfield commercial port in the State.

The sale transaction shall be subject to receipt of regulatory and other statutory approvals, the company added.