KUALA LUMPUR: IJM Corp Bhd, which is selling its 100% stake in India’s Jaipur-Mahua Tollway Pte Ltd (JMTPL) for RM295 million, is estimated to rake in a gain of some RM188 million from the disposal.

In a filing with Bursa Malaysia yesterday, IJM Corp said its wholly-owned subsidiary IJM Rajasthan (Mauritius) Ltd had on Dec 6 entered into a conditional share purchase and debenture subscription agreement (SPDSA) to dispose of 195.14 million shares, representing 100% of the issued and paid-up share capital of JMTPL to ISQ Asia Infrastructure I-A Pte Ltd for 5.25 billion Indian rupees (RM295 million), subject to closing audit and adjustments pursuant to the SPDSA. 

IJM noted that the disposal will be initially for 74% of the shares, with the remaining 26% to be disposed of upon obtaining the approval from the National Highways Authority of India — pursuant to a put and call option within a period of two years from the completion of the disposal of 74% of the shares.

JMTPL, a private limited company incorporated in India, is the concessionaire for the 108km four-laning of the divided highway of Mahua-Jaipur section of National Highway 11 from Km 120 to Km 228 in Rajasthan, India on a build-operate-transfer basis.

This article first appeared in The Edge Financial Daily, on December 9, 2014.