Cube Highways and Infrastructure have signed a deal to acquire five hybrid annuity model (HAM) highway projects from Gurugram-based KCC Buildcon.
The deal would take about six months to complete pending approvals from the National Highways Authority of India (NHAI), lenders and other regulatory agencies.
Prior to the acquisition of KCC Buildcon highway projects, Cube Highways had a portfolio of 28 highways with nearly 8,900 lane km across India.
KCC Buildcon has six road projects under the hybrid annuity model (HAM), of which only one highway section on NH 66 between Talgaon and Kalmath in Maharashtra is operational.
The five HAM highway projects being constructed by KCC Buildcon are estimated to have a contract value of some USD 575 million.
The HAM of highway construction involves the government pitching in with 40 percent of the cost while the developer contributes the balance through equity and debt.