IndInfravit Trust (IndInfravit) has completed the acquisition of 100 percent stake in eight operational road projects of Sadbhav Infrastructure Project (SIPL).
In terms of the definitive documentation entered into by IndInfravit and SIPL for the proposed acquisition of nine road infrastructure projects on 1 July 2019, the company has pursuant to its acquisition of Mysore-Bellary Highway (MBHPL) has completed the acquisition of 100 percent of the equity shareholding and economic interest held by SIPL in eight road infrastructure projects.
The acquired portfolio currently comprises the eight assets, namely Bhilwara-Rajsamand Tollway, Dhule-Palesner Tollway, Hyderabad-Yadgiri Tollway, Nagpur-Seoni Expressway, Shreenathji-Udaipur Tollway, Bijapur-Hungund Tollway, Aurangabad-Jalna Tollway Limited and MBHPL.
The enterprise value of 100 percent of the acquired portfolio is approximately Rs 63 billion.
The acquisition of the remaining road infrastructure project, namely Ahmedabad Ring Road Infrastructure (ARRIL), for which IndInfravit has entered into definitive documentation with SIPL, is pending the receipt of requisite regulatory approvals and fulfillment of certain other conditions set out under the definitive documents.
In connection with IndInfravit’s acquisition of 100 percent equity shareholding and economic interest in the acquired portfolio, SIPL has been paid consideration by way of a preferential issue of units of IndInfravit amounting to 10 percent on post-issue basis as well as cash.
The company has raised the cash by way of a preferential issue of units to the leading unit holders of IndInfravit namely, L&T Infrastructure Development Projects (L&T IDPL), Allianz, Canada Pension Plan Investment Board (CPP Investments), and OMERS Infrastructure, the infrastructure arm of OMERS Administration Corporation.
The company 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.
The acquired portfolio comprises six toll roads and two annuity roads, with total 2,300 km lane in Karnataka, Maharashtra, Rajasthan and Telangana.
Ambit acted as the exclusive financial advisor to IndInfravit on this transaction.