Mumbai, Apr 2 (Agency) Bharat Road Network (BRNL), one of India’s leading road developers, 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 the state of Uttar Pradesh, India. BRNL currently holds 39 pc stake in this project.
The Share Purchase Agreement provides for the sale of 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 (NH34). The project has been granted a 24-year concession in 2011 for strengthening and widening the two-lane highway. Toll collection on this road started in June 2015.
Commenting on the development, Mr Bajrang Kumar Choudhary, Managing Director, BRNL said, “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.” The transaction is subject to regulatory approvals and other closing conditions. The sale reaffirms commitment of BRNL to reduce the debt and also capitalise on the growth opportunities in the highways sector. The transaction is done at an enterprise value of upto Rs 1600 crs.