Construction major PNC Infratech’s three subsidiaries (special purpose vehicles (SPVs)) for road projects in Uttar Pradesh have received an in-principle approval from the National Highways Authority of India (NHAI) for divestment of stake, according to a regulatory filing. The approvals are part of the statutory process pursuant to the Rs 9,005 crore deal between PNC Infratech, PNC Infra Holdings (a subsidiary of PNC Infratech), and Highways Infrastructure Trust (HIT), an InvIT controlled by KKR & Co.
The deal, which was signed in January, involves the divestment of 12 road assets owned by PNC Infratech and PNC Infra Holdings for an enterprise value of Rs 9,005 crore. It includes 11 national highways (NH), hybrid annuity mode (HAM) assets and one state highway BOT toll asset with approximately 3,800 lane kilometers in Karnataka, Madhya Pradesh, Rajasthan and Uttar Pradesh.
On September 28, PNC Infratech had informed the exchanges that its shareholders had approved the sale or disposal of the company’s twelve assets/ undertakings, comprising SPVs in four states.
The divestment by PNC Infratech is aligned with its strategic objective of recycling the capital invested in operating road assets to leverage the ambitious growth vision outlined by the Government of India. The deal is one of the largest in terms of value in the Indian roads sector.