Ashoka Buildcon to sell stake in SPV to NIIF for Rs. 686 crore

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Ashoka Buildcon Limited has entered into a Share Purchase Agreement (“SPA”) with National Investment and Infrastructure Fund Limited (“NIIF”) and GVR Ashoka Chennai ORR Limited (“CORR”) for the sale of 18,90,00,000 equity shares in CORR, constituting 100% of the share capital of CORR, from the Company to NIIF for an aggregate financial consideration of Rs.686,00,00,000/- subject to adjustment of cash and working capital, discharge of sponsor loans, settlement of trade payables and any recoveries made by the Tamil Nadu Road Development Corporation Limited, as agreed under the share purchase agreement.

The completion of the above transaction is subject to:

(i) the Company acquiring 9,45,00,000 equity shares in CORR constituting 50% of the share capital of CORR held by GVR Infra Projects Limited; and

(ii) completion of certain conditions precedent including approval of the lenders of CORR and the Government of Tamil Nadu, through the Governor, represented by the Principal Secretary to the Government, Highways and Minor Ports Department.