Cube Highways Trust, managed by Cube Highways Fund Advisors Pvt Ltd, recently announced that it will acquire seven highway assets. These assets are from Singapore-based Cube Highways and Infrastructure III Pte Ltd and Cube Highways Infrastructure Pte Ltd, totaling an enterprise value of Rs 5,172 crore.
What is so special about the highway assets?
These assets hold a total of approximately 2,200 lane kilometers and are located across Andhra Pradesh, Maharashtra, Telangana, and Tamil Nadu, comprising six hybrid annuity model (HAM) assets and one build-operate-transfer (BOT) asset, as stated by Cube Highways Trust.
This acquisition proposal has received acceptance from the board of directors of the investment manager, contingent upon the endorsement of Ordinary Unitholders of Cube InvIT.
Details about the acquisition
Pankaj C Vasani, the CFO of Cube InvIT group, stated, “These seven highway assets hold an enterprise value of Rs 5,172 crores as of February 29, 2024, and will be acquired through internal accruals and a combination of debt, subject to requisite approvals.” The board has also approved the issuance of a postal ballot notice to secure the consent of ordinary unitholders for the proposed acquisition. Once the acquisitions are completed it will expand InvIT’s asset portfolio to include 25 diversified assets all over 13 states.
(With Inputs from PTI)