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Gayatri Projects Ltd has decided to restructure infrastructure road assets and transfer them to a separate entity.
The board of directors of the Hyderabad-based infrastructure company that met here today, accorded in-principle approval to rationalise the business and decided to formalise the proposal to transfer the infrastructure road Build, Operate and Transfer (BOT) mode assets into a separate entity through a process that is beneficial to the company, its shareholders and lenders.
The board has considered various options for restructure of infrastructure road assets of the company. Subject to final approval of the lenders, banks, clients, creditors and other interest holders in the company and regulatory authorities, it has accorded in-principle approval to rationalise the business.
The board has delegated the power to the Issue and Allotment Committee to appoint intermediaries such as valuers, merchant bankers, and lawyers and has come out with a draft scheme of arrangement.
The company in a filing with BSE said the draft scheme of arrangement, share entitlement and exchange ratio will be considered and approved at the company board meeting to be held later after the process is completed.
The move to carve out a separate entity is to get the right valuation for such assets and also enable the company to consider strategic divestment.
Most infrastructure companies are seeking to divest matured road assets to free up funds, reduce debt and use the freed up equity for new asset creation.
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