Ashoka Buildcon elaborates agreement on exit options for investors through proceeds from sale of ACL assets; Stock jumps 3%

The investors, in case of their exit from ACL, shall be entitled to receive an aggregate consideration which shall not be less than Rs1100cr.

Oct 18, 2021 11:10 IST India Infoline News Service

Ashoka Buildcon Limited informed the exchanges on Friday that in furtherance to the Shareholders Agreement dated August 12, 2012, and the Share Subscription Agreement dated August 11, 2012 (SHA) between Company, Ashoka Concessions Limited (ACL), and the Investors, the Company has entered into an agreement on October 15, 2021, with ACL and Investors to elaborate on the terms of understanding in relation to the exit options for the Investors through proceeds from the sale of ACL assets ("ACL Asset Sale Process") and/or through restructuring of investment by swapping into identified asset/SPV of ACL.

The investors, in case of their exit from ACL, shall be entitled to receive an aggregate consideration which shall not be less than Rs1100cr along with an agreed interest component (calculated on and from January 01, 2021) subject to a cap of Rs1200cr applicable till December 31, 2021 or such later date as may be mutually agreed with the Investors and thereafter further interest if any subject to receipt of interest out of ACL Asset Sale Process.

The said payment of consideration including above interest ("Amount") is subject to the receipt of proceeds from ACL Asset Sale Process and/or the abovementioned restructuring of Investors' investment. The rights of the Investors with respect to ACL under the SHA shall stand revised to the extent specified in the Agreement till the afore-mentioned Amount is paid as per the Agreement and shall be terminated upon receipt of the Amount by Investors and in case Amount is not received, then all the rights under the SHA will be reinstated to Investor.

The company had intimated on August 13, 2012 in relation to the Rs800cr investment by Macquarie SBI Infrastructure Investments Pte Limited and SBI Macquarie Infrastructure Trust (collectively, the "Investors") in ACL, i.e. a subsidiary of the Company.

Ata round 11.38 am, Ashoka Buildcon Ltd was trading at Rs120.40 per piece up by Rs3.55 or 3.04% from its previous closing of Rs116.85 per piece on the BSE. The scrip opened at Rs123.10 and has touched a high and low of Rs123.70 and Rs119.25 respectively.

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