Gammon Infrastructure Projects, an infrastructure project development company incorporated by Gammon India, announced Friday that the company has entered into a share purchase agreement to divest nine of its project companies to BIF India Holdings Pte.

BIF India is jointly held by funds managed by US-based asset management firm Brookfield Asset Management Inc. and Core Infrastructure India Fund.

The divested project companies are Andhra Expressway, Rajahmundry Expressway, Kosi Bridge Infrastructure Co., Gorakhpur Infrastructure Co, Mumbai Nasik Expressway, Vijayawada Gundu Golanu Road Project, Pravara Renewable Energy, Sikkim Hydropower Ventures and Aparna Infraenergy India.

Among the companies divested, Mumbai Nashik Expressway is 80% subsidiary of Gammon India, whereas the rest are 100% subsidiaries of the company.

The company said, "Consideration towards equity comprises of cash consideration of approx. Rs 1.92 billion and a waiver of advances by project SPVs to Gammon Infra of Rs 2.85 billion."

"The project SPVs being taken over will repay the inter corporate deposits of approx. Rs 3.71 billion given by the company to the project SPVs," it added.

Moreover, Gammon Infra is expected to generate aggregate cash inflows of approximately Rs.5.63 billion on account of the divestment. However, this is subject to closing adjustments.

Also, the company may realize additional cash inflows of up to Rs.1 billion upon crystallisation of certain milestones in future.

Shares of the company gained Rs 0.32, or 2.8%, to trade at Rs 11.74. The total volume of shares traded was 1,250,151 at the BSE (1.54 p.m., Friday).