This article first appeared in The Edge Financial Daily on November 27, 2018
KUALA LUMPUR: 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 2.42 billion rupees (RM143.4 million).
On July 20, 2015, IJM had disposed of its 70% stake in Swarna Tollway to MAIF for 10.03 billion rupees.
In a filing with Bursa Malaysia yesterday, IJM said its wholly-owned subsidiary CIDB Inventures Sdn Bhd (CIDBI) has exercised its right 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 the rupee against the ringgit,” it added.