IL&FS arm is first Indian firm to acquire stake in a Chinese state firm
09 Dec 2011
ITNL International Pvt Ltd (IITL), a subsidiary of Mumbai-based IL&FS Transportation Networks Ltd (ITNL) has been selected as the preferred bidder to acquire a 49-per cent stake in China's Chongqing Yuhe Expressway Co Ltd.
Speaking during the signing ceremony between IITL, Chongqing Expressway Group Co. Ltd and SASAC, in Chongqing, Rahul Chhabra, deputy chief of mission today said this agreement formally ratified ITNL's acquisition of 49-per cent equity interest in Chongqing Yuhe Expressway.
Chhabra said, "Chongqing Expressway Group Co Ltd, which is one of Chongqing's largest state-owned infrastructure companies with assets in excess of RMB 100 billion will find an ideal partner in ITNL, a group company of IL&FS, which is one of India's leading infrastructure development and finance companies."
The deal would make IITL the first Indian company to acquire a stake in a Chinese state-owned firm.
IITL had earlier signed an agreement with the China's Chongqing Expressway Group Co (CEG) and SASAC-Chongqing for acquiring the stake, and is expected to make an investment of around $150 million.
Chongqing Yuhe Expressway operates the 58-km Yu He Expressway in Chongqing, Southwest China, and has toll concession rights till 2032.
