Cube Highways and Infrastructure III Pte Ltd, the Singapore-based infrastructure company formed by I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), has entered into a binding deal with India’s Reliance Infrastructure to acquire Delhi-Agra Toll Roadway.
The deal, worth $519 million, is subject to all mandatory government permissions and approvals in India.
“RInfra today announced the signing of Definitive Binding Agreement with Cube Highways and Infrastructure III Pte Ltd for the sale of its 100 per cent stake in Delhi-Agra (DA) Toll Road Private Limited,” the company said in a statement.”The total deal enterprise value is over Rs 3,600 crore ($519million). In addition, NHAI (national highway authority of India) claims of Rs 1,200 crore ($173 million) to be filed by DA Toll Road Pvt Ltd will flow directly to Reliance Infrastructure,” the company said.
Reliance Infrastructure’s special purpose vehicle Delhi-Agra Toll Road Private Limited operates the showpiece 180-km long six-lane road that connects the national capital Delhi with Agra on National Highway (NH) 2.
The profitable project has witnessed a revenue growth of 25 percent in FY18.
The tolling operation for the project started in October 2012 and has a concession period till 2038.
The Anil Ambani group-promoted Reliance Infrastructure will utilise the proceeds from the stake sale in the Delhi-Agra Highway Project to reduce its debt.
After the completion of the transaction for Delhi-Agra Toll Road, the debt of Reliance Infrastructure will reduce by 25 percent to less than $720 million, the company said.
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