GMR Infrastructure Limited (GIL) on Friday announced the signing of definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding 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 proposed transfer of stake of KSEZ, the 100 per cent equity stake of Kakinada Gateway Port Limited (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 2610 crores. Out of the total consideration, Rs.1600 crores would be received on the closing date and balance 1010 crore would be received in next 2 to 3 years which is contingent upon certain agreed milestones,” the company said in a release.

Proceeds will be used majorly to reduce the indebtedness of GMR Group.

GMR’s consolidated gross debt as on June 30, 2020, stood at Rs 32,100 crore, while net debt was at Rs 26,300 crore.

KSEZ is engaged in the business of implementation of a port based multi-product special economic zone project at Kakinada in Andhra Pradesh and KGPL has the Concession granted by the Goverment of Andhra Pradesh to set up a greenfield commercial port in Kona Village in East Godavari district of Andhra Pradesh.

The sale transaction shall be subject to receipt of Regulatory and other Statutory Approvals.

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