Ashoka Concessions Ltd to sell 5 subsidiaries to KKR arm

Ashoka Concessions Limited ("ACL"), a material subsidiary of Ashoka Buildcon Limited ("the Company") has entered into share subscription and share purchase agreements with Galaxy Investments II Pte. Ltd., an affiliate of funds, vehicles and entities managed and/or advised by Kohlberg Kravis Roberts & Co. L.P., for sale of the entire share capital (which will also include repayment of any shareholder loans) held in the following subsidiaries.

1) Ashoka Highways (Bhandara) Limited;
2) Ashoka Highways (Durg) Limited;
3) Ashoka Belgaum Dharwad Tollway Limited;
4) Ashoka Sambalpur Baragarh Tollway Limited; and
5) Ashoka Dhankuni Kharagpur Tollway Limited

for an aggregate consideration of Rs.1337 Crore (Rupees One Thousand Three Hundred Thirty Seven Crore only) subject to adjustments for cash and debt like items as agreed under the respective share subscription and purchase agreements.

The completion of the above transactions is subject to completion of certain conditions precedent including approval of the lenders of the respective subsidiaries and National Highway Authority of India.

Shares of Ashoka Buildcon Limited was last trading in BSE at Rs. 92.15 as compared to the previous close of Rs. 94.00. The total number of shares traded during the day was 57935 in over 993 trades.

The stock hit an intraday high of Rs. 95.40 and intraday low of 91.60. The net turnover during the day was Rs. 5343164.00.

Source : Equity Bulls

Keywords

AshokaBuildcon INE442H01029 AshokaConcessions Subsidiaries StakeSale