GMR Infrastructure is selling its entire 51% stake in Kakinada SEZ (KSEZ) to Aurobindo Realty and Infrastructure (ARIPL), in a ₹2,610 crore deal.
Definitive agreements for the sale of the equity by wholly-owned subsidiary GMR SEZ and Port Holding (GSPHL) have been signed, GMR Infrastructure said.
As part of the proposed stake sale in KSEZ, the 100% equity of Kakinada Gateway Port (KGPL) 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₹2,610 crore. Of this, ₹1,600 crore would be received on the closing date and balance ₹1,010 crore in next 2 to 3 years contingent upon certain agreed milestones.
The sale transaction will be subject to receipt of regulatory and other statutory approvals. The proceeds will be used to reduce debt of GMR Group.
A statement from GMR said KSEZ is engaged in the business of implementation of a port based multi-product special economic zone project at Kakinada, East Godavari district of Andhra Pradesh.
Kakinada Gateway Port has the concession granted by Andhra Pradesh government to set up a greenfield commercial port in Kona village in the district