30 May 2022
Infrastructure India plc
("IIP" or the "Company" or, together with its subsidiaries, the "Group")
Extension of Long Stop Date
Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, announces that it has agreed to extend a long stop date in relation to the conditional 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 £5.6 million) and the transaction is structured with the separate sale of each SPV.
As announced on 20 April 2022, AVSR agreed to provide an unsecured advance of INR 275 million (approximately £2.8 million), which is 50% of the agreed consideration for both SPVs. IEL must satisfy all outstanding conditions, including regulatory approvals, by 15 July 2022, which is extended from 30 May 2022, or refund the advance to AVSR. The long stop extension is a result of slower than anticipated progress for third party clearance certificates. 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.
- Ends -
Enquiries:
|
Infrastructure India plc Sonny Lulla
|
Via Novella |
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| Strand Hanson Limited Nominated Adviser James Spinney / James Dance
| +44 (0) 20 7409 3494 |
| Singer Capital Markets Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales
| +44 (0) 20 7496 3000 |
| Novella Financial PR Tim Robertson / Fergus Young | +44 (0) 20 3151 7008 |
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