RINFRA TO SELL ROAD PROJECT FOR ~3.6K CR
Anil Ambani-led Reliance Infrastructure has announced a sale agreement with Cube Highways and Infrastructure for its Delhi-Agra toll road project for ~3,600
crore. “Reliance Infrastructure has signed a definitive binding agreement with Cube Highways and Infrastructure III for the sale of its 100 per cent stake in Delhi-Agra (DA) Toll Road. Cube Highways and Infrastructure III is a Singapore-based company formed by global infrastructure fund – I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority,” the firm said.
Anil Ambani-led Reliance Infrastructure (R-Infra) has announced a sale agreement with Cube Highways and Infrastructure for its DelhiAgra toll road project for ~3,600 crore. “R-Infra has signed a definitive binding agreement with Cube Highways and Infrastructure III for the sale of its 100 per cent stake in Delhi-Agra (DA) Toll Road. Cube Highways and Infrastructure III is a Singapore-based company formed by global infrastructure fund – I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority,” the company said.
In its release, the firm pegged the deal enterprise value at ~3,600 crore. “NHAI claims of ~1,200 crore to be filed by DA Toll Road will flow directly to R-Infra,” the statement said.
The road developer is expected to utilise proceeds from this sale to reduce its debt. “After the completion of the transaction for DA Toll Road, the debt of R-Infra will reduce by 25 per cent to only less than ~5,000 crore,” R-Infra said. R-Infra has a road portfolio of around 11 assets, including the DA project. The company has been looking to divest this portfolio for the past two years.
In the past, options like infrastructure investment trusts were considered to monetise these assets, but failed. The transaction is in line with R-Infra’s strategic plan of monetising non-core business and focus on major growth areas like engineering & construction business. The transaction is subject to all requisite permissions and approvals,” the firm said.