IJM to sell India highway concession for RM295m

PETALING JAYA: IJM Corp Bhd's IJM Rajasthan (Mauritius) Ltd (IJMRM) has signed an agreement to sell its entire stake in a highway concession in Rajasthan, India for an estimated INR5.250 billion (RM295 million).
The conditional share purchase and debenture subscription agreement between IJMRM and ISQ Asia Infrastructure I-A Private Ltd is to dispose of its entire stake in Jaipur-Mahua Tollway Private Ltd (JMTPL), the concessionaire for the four-laning of the divided highway of Mahua-Jaipur Section of National Highway – 11 from Km. 120.000 to 228.000 in Rajasthan, India on Build-Operate-Transfer basis.
The disposal sum is subject to closing audit and adjustments. IJM stands to gain RM188 million from the disposal.
IJMRM will initially let go of 74% of the equity shares, while the balance 26% will be disposed of upon approval of the National Highways Authority of India pursuant to a put and call option within two years of the disposal of the74% stake.
IJMRM is a wholly-owned subsidiary of IJM Investments (M) Ltd, which in turn is a wholly-owned subsidiary of IJM.