IJM'S UNIT TO ACQUIRE ADDITIONAL 48.95 PCT EQUITY INTEREST IN VIJAYAWADA TOLLWAY

KUALA LUMPUR, May 6 (Bernama) -- IJM Corporation Bhd says IJM Vijayawada (Mauritius) Ltd (IJMVM) has executed a share purchase agreement to acquire a 48.95 per cent equity interest in Vijayawada Tollway Private Ltd (VTPL) for a total consideration of about RM28.5 million. (US$1=RM3)

IJMVM is a wholly-owned subsidiary of IJM Investments (M) Ltd, which in turn is a wholly-owned subsidiary of the company.

VTPL is the concessionaire of the six-laning of the existing four-lane road of the Chilkaluripet-Vijayawada Section of NH-5 from KM 355.00 to KM 434.15 in the state of Andhra Pradesh, India, on build-operate-transfer basis.

The total consideration of the acquisition of shares in VTPL was arrived at on a willing-buyer-willing-seller basis after taking into consideration, the discounted future cash flows of the project, it said in a filing to Bursa Malaysia Friday.

With the acquisition, the effective interest of the company in VTPL will increase from 51.02 per cent to 99.97 per cent.