IL&FS arm, ITNL International to sell 49% stake in its China road JV

ITNL International, a subsidiary of the bankrupt infra lender Infrastructure Leasing & Financial Services (IL&FS) is looking to sell its 49 percent stake in Chongqing Yuhe Expressway Company in China, the company said Friday.

The Singapore-based ITNL International is a wholly- owned subsidiary of IL&FS Transportation Networks.

The balance 51 percent is owned by local partner Chongqing Expressway Group, one of the largest state-owned enterprises in China's Chongqing with USD25 billion in assets.

Chongqing Yuhe Expressway holds a concession for a tolled expressway of around 58.72 km in mainland China, over which it has the right to collect toll.

Around 13.25 years of the term of the current concession remain as of end March, and the company has rights to collect toll from users and subsidies from the Chinese government for the balance period of the concession.

The IL&FS's board has engaged UBS Hong Kong to assist in the transaction.

Last week, the group had said state-run energy major Gail India has offered Rs 4,800 crore for its seven operating wind power plants up for sale. These seven special purpose vehicles have an aggregate debt of Rs 3,700 crore.

The Uday Kotak-led board of the IL&FS group, as part of the resolution process has initiated sale of a number of group assets.

Sale process for assets including education, funds, roads and thermal power plant are currently underway and binding financial bids are expected for these companies in stages by May 2019, it said.