Ashoka Buildcon Ltd to acquire stake in GVR Ashoka Chennai ORR Ltd

Ashoka Buildcon Limited ("the Company") has entered into a share purchase agreement ("SPA") with GVR Infra Projects Limited ("GIPL") and GVR Ashoka Chennai ORR Limited ("CORR") for the acquisition of 9,45,00,000 equity shares held by GIPL in CORR, constituting 50% of the share capital of CORR, for a consideration of Rs.185,00,00,000/- (Rupees One Hundred Eighty Five Crore only) subject to terms as agreed under the Share Purchase Agreement ("SPA") as per the terms of the SPA.

The completion of the above transaction is subject to completion of certain conditions precedent. Please also note that approvals of the Lenders of CORR and Government of Tamil Nadu, Authority awarding the Project viz. Tamil Nadu Road Development Corporation Limited, have already been obtained.

Post-acquisition of 50% equity shares held by GIPL, CORR would become wholly-owned subsidiary of the Company with effect from the date of acquisition of all 9,45,00,000 equity shares.

The Target Entity viz. GVR Ashoka Chennai ORR Limited has been incorporated on July 23, 2013 at Chennai, India, for execution of the Project viz. To carry on operations as a Special Purpose Vehicle (SPV) for the Development of Chennai Outer Ring Road Phase II from Nemilicheri in NH 205 to Minjur in Thiruvottiyur - Ponneri - Panchetti (TPP) Road including all Project Assets, project facilities, and its subsequent development and augmentation on Design, Build, Finance, Operate and Transfer (DBFOT) Annuity basis at Chennai, in the State of Tamil Nadu, India.

Shares of Ashoka Buildcon Limited was last trading in BSE at Rs. 145.55 as compared to the previous close of Rs. 155.65. The total number of shares traded during the day was 454176 in over 8123 trades.

The stock hit an intraday high of Rs. 162.15 and intraday low of 144.05. The net turnover during the day was Rs. 68617556.00.

Source : Equity Bulls

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