Update re Indian Energy Limited

RNS Number : 8850A

Infrastructure India plc

17 September 2018

 

17 September 2018

Infrastructure India plc

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

Update on Indian Energy Limited

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, announced in April that the IIP Group had entered into an agreement with ReNew Power Services Private Limited ("ReNew") for the sale of Indian Energy Limited ("IEL") (the "Disposal").

IEL is wholly owned by the IIP Group and is an independent power producer that owns and operates wind farms, with 41.3MW of installed capacity at two sites in the states of Karnataka and Tamil Nadu.

On 27 April 2018, IIP announced that its subsidiary Indian Energy (Mauritius) Limited had entered into a binding conditional share purchase agreement ("SPA") whereby the IIP Group had agreed the sale, subject to regulatory and other approvals, of its 100% interest in the share capital of IEL to ReNew, for a cash consideration of INR 364 million (approximately £3.97 million*).

Following an unduly protracted process and attempts by ReNew to seek to amend the agreed contractual terms of the Disposal, the Board confirms that on 14 September 2018, with the remaining conditions precedent to the SPA not having been met by the long stop date, the IIP Group withdrew from the proposed transaction and the sale of IEL to ReNew will not proceed. Whilst it is disappointed with this outcome, the Board believes this is the correct decision for the Group.

The Company looks forward to providing shareholders with further asset updates with the release of its Annual Results before the end of the month.

*at the exchange rate of GBP:INR 91.76 on 27 April 2018.

- Ends -

Enquiries:

Infrastructure India plc        Sonny Lulla	www.iiplc.com via Smith & Williamson
Smith & Williamson Corporate Finance Limited Nominated Adviser & Joint Broker Azhic Basirov / Ben Jeynes	[phone]
Nplus1 Singer Advisory LLP Joint Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Novella Financial PR Tim Robertson / Toby Andrews	[phone]

The information contained within this announcement is considered to be inside information prior to its release as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

 

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