Madhucon Projects: Madhucon Projects Ltd reply to clarification sought by the exchange

The Exchange has sought clarification from Madhucon Projects Ltd with respect to disclosure dated December 23, 2014 stating 'Madhucon Projects Limited a flagship Company of Madhucon Group has entered into a term sheet with TRIL Roads Pvt. Limited to disinvest its subsidiaries Madhucon Infra Limited and Madhucon Toll Highways Limiteds 74% stake in Madhucon Agra-Jaipur Expressways Limited (Step down subsidiary of Madhucon Projects Limited), a National Highway Authority of Indias Road Project.'

With reference to the disinvestment of Madhucon Agra-Jaipur Expressways Ltd, Madhucon Projects Ltd had been requested to provide clarification for the non-disclosure of consideration in the disclosure dated December 23, 2014 to the Exchange.

Madhucon Projects Ltd replied stating 'It is clarified that the term sheet signed between Madhucon Infra Limited (Subsidiary of Madhucon Projects Limited) and Madhucon Toll Highways Limited(Subsidiary of Madhcuon Infra Limited) on 22nd December, 2014 stipulate the Gross consideration of the Road Project deal is around Rs.250 Crores including NHAI grant of Rs.15 Crores for acquisition of 100% equity stake in MAJEL. This is proposed to be in 2 trenches.

1. 74% equity stake in MAJEL owned by the current shareholders along with all associated rights and obligations within 60 days from the date of signing Term sheet, subject to due diligence and execution of Definitive Agreements (Trench I closure).

2. Balance 26% stake in MAJEL owned by the current shareholders after receipt of NHAI approval and subject to Clause 17 of Term sheet(Trench II closure).

This is only an indicative term sheet subject to Due diligence and signing of Definitive agreement and acceptance by the parties.'