Asset Sale Update

RNS Number : 7792I

Infrastructure India plc

20 April 2022

 

20 April 2022

Infrastructure India plc

("IIP" or the "Company" or, together with its subsidiaries, the "Group")

Asset Sale Update

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, is pleased to announce that part of the agreed consideration will be advanced to the Group in relation to the sale of Indian Energy (Mauritius) Limited's ("IEL") assets.

IEL, which is a wholly owned subsidiary of IIP, is an independent power producer that owns and operates wind farms at two sites in the states of Karnataka and Tamil Nadu. IEL holds each wind farm asset within separate Special Purpose Vehicles ("SPV"), Theni and Gadag, which are its only assets.

As announced on 28 February 2022, IIP entered into an agreement for the conditional sale of its 100% interest in each SPV to AVSR Constructions ("AVSR"), for a total consideration of INR 550 million (approximately £5.5 million) and the transaction is structured with the separate sale of each SPV.

AVSR has agreed to provide an unsecured advance of INR 275 million (approximately £2.75 million), which is 50% of the agreed consideration for both SPVs, on 20 April 2022. IEL must satisfy all outstanding conditions, including regulatory approvals, by an extended long stop date of 30 May 2022 or refund the advance to AVSR. Upon satisfaction or waiver of all outstanding conditions and completion of the sale of the SPVs, the balance of the consideration will be transferred to IEL. IIP's lenders have waived the requirement to pay down a proportion of the Company's debt.

The Company's creditors continue to be supportive, however, should the outstanding conditions not be met by IEL and consequently the sale not proceed, the Company will not have adequate funding to meet its liabilities when they fall due and will need to identify other sources of financing.

The Board looks forward to providing shareholders with further updates, as appropriate, in due course.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).

- Ends -

Enquiries:

Infrastructure India plc Sonny Lulla	www.iiplc.com Via Novella
Strand Hanson Limited Nominated Adviser James Spinney / James Dance	[phone]
Singer Capital Markets Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Novella Financial PR Tim Robertson / Fergus Young	[phone]

 

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