PNC Infratech announces execution of SPA for divestment of stake in Ghaziabad Aligarh Road Project.

PNC Infratech Limited announced execution of a Share Purchase Agreement (SPA) for sale of 35% stake held by the Company along with its wholly owned subsidiary - PNC Infra Holdings Limited in Ghaziabad Aligarh Expressway Private Limited, the Concessionaire (SPV) for 'Four Laning of Ghaziabad - Aligarh Section of NH-91 BOT (Toll) Project in Uttar Pradesh along with the other partners of SPV, with Cube Highways and Infrastructure Pte. Ltd. on May 04, 2019.

Total Enterprise Value (EV) of the sale is Rs. 18.34 billion subject to adjustments of debt and other capital and operational costs at the Closing Date. The Company's share of 35% equity translates to sale consideration of Rs. 2.7 billion. In addition to this the Company would be able to recover its outstanding EPC receivables from SPV along with certain Closing adjustments, which would likely to result into total cash inflow of over Rs. 3.0 billion for the Company. The cash flows that would be released upon the proposed disinvestment are expected augment financial resources of the Company for funding its present and future projects. The proposed divestment would also reduce the Company's overall debt by Rs. 10.7 billion as of December 31, 2018.

Shares of PNC Infratech Ltd. was last trading in BSE at Rs.156.1 as compared to the previous close of Rs. 149.45. The total number of shares traded during the day was 2945 in over 164 trades.

The stock hit an intraday high of Rs. 156.5 and intraday low of 148.45. The net turnover during the day was Rs. 450494.

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