GMR Infra gets first tranche towards stake divestment in Kakinada SEZ

New Delhi [India], August 13 : Diversified conglomerate GMR Infrastucture Ltd on Friday announced the receipt of total first tranche consideration towards sale of 51 per cent equity owned by its wholly-owned subsidiary GMR SEZ and Port Holdings Ltd (GSPHL) in Kakinada SEZ Ltd (KSEZ) to Aurobindo Realty and Infrastructure.
As part of the stale transfer and in terms of regulatory requirements, the 74 per cent equity stake of Kakinada Gateway Port Ltd (KGPL) held by KSEZ is also being transferred to Aurobindo Realty.
GMR Infrastructure said total revised consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,719 crore.
Out of the total consideration, Rs 1,692 crore (first tranche consideration) is received and balance Rs 1,027 crore will be received in the next two to three years which is contingent upon certain agreed milestones.
The majority of divestment proceeds are primarily used to reduce indebtedness, the group said in a statement.
KSEZ is engaged in the business of implementation of a port-based multi-product special economic zone project at Kakinada in East Godavari district of Andhra Pradesh.
KGPL has the concession granted by the state government of Andhra Pradesh to set up a greenfield commercial port in Kona village of East Godavari district.