Reliance Infra, Cube Highway in talks for sale of 4 road assets

MUMBAI: Reliance Infrastructure Ltd is in talks with Singapore based-cube Highways to sell its 4 road assets for an enterprise value of Rs 1,430 crore. The company will use the proceeds from the sale to cut down its debt.

Singapore-based Cube Highways is promoted by I Squared Capital, a wholly owned subsidiary of the Abu Dhabi Investment Authority, International Finance Corporation and a consortium of Japanese investors including Mitsubishi Corporation and Japan Overseas Infrastructure Investment Corporation.

According to sources close to the development, Cube Highways has shown interest in Reliance Infra’s four road assets viz, DS Toll Road Private Limited, NK Toll Road Private Limited, SU Toll Road Private Limited, in Tamil Nadu and JR Toll Road Private Limited, in Rajasthan.

With a total length of 283 kms, all four road assets are under operation with the balance available concession period of up to 12 years. Cube Highways has offered an Enterprise Value of Rs1,430 crore and the proceeds would result in Reliance Infra’s debt reduction to that extent.

If this deal materialises, this would be the second transaction between Reliance Infra and Cube Highway. In January 2021, Reliance Infrastructure had successfully completed the sale of its 100 per cent stake in Delhi-agra Toll Road to Cube Highways for an enterprise value over Rs3,600.

Reliance Infra is on a debt reduction drive. Recently the company announced a fund raising of Rs550 crore from the promoter group and VSFI Holding Pvt Ltd — an affiliate of Varde Investment Partners.