L&T-run investment trust acquires 8 Sadbhav road projects

Mumbai: Larsen & Toubro-run investment trust IndInfravit on Thursday said it has completed the acquisition of 100 per cent stake in eight operational road projects of Sadbhav Infrastructure at an enterprise value of Rs 6,300 crore. IndInfravit had entered into a definitive agreement with Sadbhav to acquire its total nine road assets on July 1, last year.

"Pursuant to the acquisition of Mysore-Bellary Highway road asset today, IndInfravit has completed the acquisition of 100 per cent of the equity shareholding and economic interest held by Sadbhav in eight road infrastructure projects at an enterprise value of Rs 6,300 crore," it said in a statement.

Of these eight projects, six are toll roads while the remaining two are annuity roads, with total length of 2,300 km across states like Karnataka, Maharashtra, Rajasthan and Telangana.

These projects are -Bhilwara Rajsamand Tollway, Dhule Palesner Tollway, Hyderabad Yadgiri Tollway, Nagpur Seoni Expressway, Shreenathji Udaipur Tollway, Bijapur-Hungund Tollway, Aurangabad Jalna Tollway and Mysore Bellary highway.

"The acquisition of the ninth road project - Ahmedabad Ring Road Infrastructure is pending the receipt of requisite regulatory approvals and fulfillment of certain other conditions set out under the definitive documents," it said.

Under the agreement, Sadbhav has received consideration by way of a preferential issue of units of IndInfravit (amounting to 10 per cent on post-issue basis) as well as cash.

IndInfravit has raised the cash by way of a preferential issue of units to the unitholders of IndInfravit such as L&T Infrastructure Development Projects, Allianz, Canada Pension Plan Investment Board, and OMERS Infrastructure, the infrastructure arm of OMERS Administration Corporation.

"IndInfravit has also undertaken an issue of non-convertible debentures with a view to refinance a substantial portion of the financial indebtedness of the acquired portfolio," it said.

IndInfravit noted that this transaction is in line with its strategy to acquire additional road projects in India, and would significantly expand the current road portfolio of five operational toll road concessions.

Commenting on the development, J Subramanian, CEO, LTIDPL IndvIT Services (Investment Manager of IndInfravit) said, "InvITs, backed by marquee overseas investors, create the necessary ecosystem to support the government's ambitious plan to develop high quality infrastructure in the country."

Ambit acted as the exclusive financial advisor to IndInfravit on this transaction. PSK MR MR