New Delhi, Dec 24 (IANS): IL&FS Group has received Justice (Retd) D.K. Jain's approval for sale of its Chinese road asset - Chongqing Yuhe Expressway Co Ltd (CYEC) to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin), a group company of PingAn Insurance Company of China.

Justice Jain has been appointed to supervise the operation of the resolution process undertaken by debt-laden IL&FS.

The sale of the Chinese road asset will allow IL&FS to settle about Rs 2,600 crore of debt at the group level.

IL&FS Group holds 49 per cent stake in CYEC - through its step down Singapore-based subsidiary - ITNL International Pte Ltd (IIPL). The balance 51 per cent stake in CYEC is held by Chongqing Expressway Group (CEG).

PingAn has bid at an aggregate equity valuation of $281 million for 100 per cent stake. This values IIPL's 49 per cent stake at about $138 million (Rs 1,020 crore). PingAn will also take over the Rs 1,600 crore debt in CYEC (as of October 2018).

With nod for the deal, IIPL will now be signing definitive agreements and filing an application with NCLT (to be taken on record) to complete the transaction.

On completion, sale of this asset will address nearly Rs 2,600 crore of IL&FS debt.

PingAn emerged the highest bidder for the IL&FS stake in CYEC after a public process. The lenders to CYEC would continue to be serviced from the project cash-flows.

CYEC holds and operates a concession for a toll-based expressway of approximately 58.72 km in China Mainland till 2032. The company has the right to collect toll from users and subsidies from Chinese government for the remaining period of concession term.

IIPL is a Singapore-based subsidiary of IL&FS Transportation Network Limited (ITNL), a subsidiary of IL&FS.

PingAn Insurance (Group) Company is one of the largest financial services companies in the world. It is ranked 21st on the Fortune Global 500 list. The company is listed on the stock exchanges in Hong Kong and Shanghai.