KUALA LUMPUR (Nov 26): IJM Corp Bhd is disposing of its remaining 30% stake in Indian highway concessionaire Swarna Tollway Private Ltd to MAIF Investments India 3 Pte Ltd for INR2.42 billion (RM143.4 million).

On July 20, 2015, IJM had disposed of its 70% stake in Swarna Tollwayto MAIF for INR10.03 billion.

In a filing with Bursa Malaysia today, IJM said its wholly-owned subsidiary CIDB Inventures Sdn Bhd (CIDBI) has exercised its rights pursuant to a shareholders agreement dated Oct 26, 2015 to dispose of the remaining 81 million shares or a 30% stake in Swarna Tollway to MAIF.

"The expected loss from the disposal of 30% shares is approximately RM37.5 million due to the reversal of share of profits recognised by CIDBI during the period from the completion of the disposal of 70% shares up to the completion of the disposal of 30% shares, and the foreign exchange loss incurred arising from the diminution of CIDBI’s book value of Swarna Tollway due to devaluation of INR against the ringgit," it added.

Swarna Tollway is the concessionaire for the improvement and upgrading of existing 2-lane highways from km 52.8 to km 163.6 of Tada-Nellore section and km 217 to km 252 of Nandigama-Ibrahimpatnam section of the National Highways No. 5 and No. 9 respectively in Andhra Pradesh on a build-operate-yransfer basis.

IJM said the INR2.42 billion consideration was adjusted for the amount of dividends received by CIDBI during the period from the completion of the disposal of 70% shares up to the completion of the disposal of 30% shares.

It also takes into account the non-conclusion of pending disputes with the National Highway Authority of India for the revised date of commencement of concession period and the increase of tollable length of National Highway No. 9 to 49.2km.

IJM shares closed unchanged at RM1.82 today, with 959,800 shares done, for a market capitalisation of RM6.6 billlion.