- GMR Group to divest its entire 51% stake in Kakinada SEZ Limited
- Proceeds will be used majorly to reduce indebtedness of the Group
GMR Infrastructure Limited today announced signing of definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding Limited of its entire 51% stake in Kakinada SEZ Limited to Aurobindo Realty and Infrastructure Private Limited. As part of the proposed transfer of stake of KSEZ, the 100% equity stake of Kakinada Gateway Port Limited 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.
KSEZ is engaged in the business of implementation of a port based multi-product special economic zone project at Kakinada, East Godavari District, Andhra Pradesh and KGPL has the Concession granted by the Govt. of Andhra Pradesh to set up a greenfield commercial port in Kona Village of the East Godavari Dist., of Andhra Pradesh.
The sale transaction shall be subject to receipt of Regulatory and other Statutory Approvals