Bharat Road Network Ltd (BRNL) along with its partners has inked a deal with Cube Highways for the sale of the entire stake in Ghaziabad Aligarh Expressway Private Limited.
The transaction is done at an enterprise value of up to Rs 1,600 crore. (Representative Image)
Bharat Road Network Ltd (BRNL) along with its partners has inked a deal with Cube Highways for the sale of the entire stake in Ghaziabad Aligarh Expressway Private Limited. The proceeds from the sale will be utilised to reduce debt and also capitalise on growth opportunities in the highways sector. BRNL along with its partners has signed an agreement with Cube Highways, a portfolio company of I Squared Capital, for the complete transfer of ownership in an operating toll road project in Uttar Pradesh, the company said in a statement. BRNL currently holds 39 per cent stake in this project.
The transaction is done at an enterprise value of up to Rs 1,600 crore. It said the share purchase agreement provides for the sale of the entire stake in Ghaziabad Aligarh Expressway Private Limited, the special purpose vehicle (SPV) engaged in the development, operation and maintenance of a 126-kilometre toll road project from Ghaziabad to Aligarh on National Highway 34. The project has been granted a 24-year concession in 2011 for strengthening and widening the two-lane highway, the statement said adding, toll collection on this road started in June 2015.
“We continue to explore opportunities for value creation through our portfolio realignment. We remain focused towards optimizing value through such strategic exits and are equally committed to raise resources to capitalise on the current and upcoming primary and secondary market opportunities in the highway sector,” Bajrang Kumar Choudhary, Managing Director, BRNL said. The transaction is subject to regulatory approvals and other closing conditions, it said.
BRNL is a road BOT (build, operate, transfer) company in India, focused on development, implementation, operation and maintenance of roads and highways projects. It has a project portfolio worth Rs 7,000 crore consisting of six operational BOT projects, covering 2,095 lane kilometres across Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha. Cube Highways and Infrastructure Pte is a Singapore-based company investing in road and highway projects, along with other select infrastructure sectors in India.