China is highest bidder for IL&FS participation in E-way co

NEW DELHI: Major Chinese insurer PingAn has become the highest bidder for IL&fsinchongqingyuheexpresswayco(cyel),andlendersalsoapprovedtheproposalinprinciple.

thesalewillsettlealmostrs2.5billionofil&fs'stotaldebt.thecompany'sofferinanaggregateequityvaluationcovers100%ofcyel'sdebt,officialsourcestoldtoi.il&fsownsa49%stakeincyel,acompanyincorporatedinmainlandchina,throughitssingapore-basedsubsidiaryitnlinternationalpte(iipl),withtheremainderownedbychongqingexpresswaygroup(ceg).

thesaleofthestakeinthecompanychinaexpresswayispartofthestrategytorecoveralargepartofthefundsthatarelockedinthebeleagueredgroup,totalingmorethanrs90,000crore.governmentsourcessaidtheyexpectupto60%oftheil&fsgroup'sdebttoberecoveredthroughacombinationoftransactionsinthecomingmonths.

whilethebulkofalmostrs13billionwillcomethroughinvitsfromroadprojects,anotherrs500millionwillcomefromthesaleofotherroadassets,whileclaimsofaroundrs6billionhavebeenbudgetedfor.nhaiandotheragencies

thesaleinchinaalongwiththesaleofstakesingiftcityandongctripuraareexpectedtogenerateanotherrs8billion.il&fsfinancialservicescanalsohelpgeneratearoundrsrs5billionandwindenergyandrealestatecompaniescouldearnrsrs4.5billionandrsrs4billion,respectively.

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