Eredene Capital PLC, the AIM quoted investor in Indian infrastructure, on Thursday announced that its subsidiary, West Coast Port Ltd, has sold its stake in Ocean Sparkle Limited (OSL), India's leading port operations and marine services company, to Mauritius-based Infrastructure India Holdings Fund LLC (IIHF) for 8.2 million pounds.
The Eredene Group held 6.8 percent of OSL, which it purchased in 2010 for 7.3 million pounds, and the transaction represents a gross premium of 39 percent over investment cost in Indian Rupee terms.
The sale is part of Eredene's strategy of realising its investments in India and returning capital to shareholders.
An initial return to shareholders of 15.3 million pounds, equivalent to 3.4 pence per share, was made in August 2012 via a share buy back at 18 percent per share.
IIHF is an existing shareholder of OSL, which operates India's largest fleet of harbour tugs with a presence in most of the leading ports in India.
Commenting on the development, Ranveer Sharma, Managing Director, Eredene Capital Advisors, said, "This is the first major realisation from Eredene's core infrastructure portfolio. It represents a healthy premium to the investment cost as well as the book value. Eredene has committed to follow a realisation strategy which will witness over a period of time investment realisations in order to maximise shareholder value."