KKR, the global investment firm, will acquire Global Infrastructure Partners’ (GIP) entire interest in Highway Concessions One (HC1) and seven highway assets with a total length of 487 km.
HC1 is a platform in India that manages GIP’s road portfolio which spans across seven states including Gujarat, Karnataka, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu, and Telangana.
Through the acquisition of GIP’s interest in HC1, KKR aims to help strengthen and expand India’s national highway network, which serves about 40 percent of total traffic but accounts for only two percent of the country’s road network.
Earlier, the largest Canadian pension funds -- Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec (CDPQ) were in advanced discussions for acquiring road assets of GIP, in a deal worth Rs 2,500-3,000 crore which did not fructify.
In 2018, GIP had purchased IDFC Alternatives’ infrastructure investment business including the road assets. As part of its realignment exercise, GIP had decided to monetise its stake in Highway Concessions One.
These projects include five toll roads and two annuity roads across seven states— Ulundurpet Expressways in Tamil Nadu, Nirmal BOT in Telangana, Dewas Bhopal Corridor in Madhya Pradesh, Bangalore Elevated Tollway in Karnataka, Godhra Expressways in Gujarat, Jodhpur Pali Expressway in Rajasthan and Shillong Expressway in Meghalaya.