The Adani Group said on August 4 that it has entered into an agreement to acquire a portfolio of toll roads put up for sale by Macquarie for Rs 3,110 crore.
Adani Road Transport, a subsidiary of Adani Enterprises, will acquire Gujarat Road and Infrastructure Company and Swarna Tollway for around Rs 3,110 crore from Macquarie Asia Infrastructure Fund, the company said in a press release.
Adani Road Transport will acquire 56.8 percent in Gujarat Road and Infrastructure and 100 percent stake in Swarna Tollway subject to regulatory approval. The transaction is expected to close in September 2022.
The Adani Group beat out private equity firm KKR and I Squared Capita-backed Cube Highways for the assets of Macquarie Asia Infrastructure Fund.
"This is one of the largest portfolios of toll road assets with high quality, strong team, long and robust track record of growth and strong cash flow generation with low leverage," said Krishna Prakash Maheshwari, chief executive officer of Adani Road Transport.
Macquarie was seeking an enterprise value of Rs 4,200 crore for the roads, according to reports.
Swarna Tollway owns two stretches of toll roads in Andhra Pradesh, Tada to Nellore on NH-16 spanning 110 km and Nandigama to Ibrahimpatnam to Vijayawada on NH-65 spanning 48 km. Gujarat Road and Infrastructure has two stretches of toll roads in Gujarat, Ahmedabad to Mehsana on SH-41 spanning 51.6 km and Vadodara to Halol on SH-87 spanning 31.7 km.
Adani group said that the portfolio has last twelve months' EBITDA of Rs 456 crore with around Rs 165 crore of net debt.
This is the second set of roads that Macquarie has monetized in India. In December, KKR signed an agreement to acquire five toll roads from Ashoka Concessions, where Macquarie is a significant minority shareholder, for Rs 1,337 crore to provide an exit to the investor.
The acquisition of Macquarie Asia Infrastructure Fund’s toll road portfolio in Andhra Pradesh and Gujarat will enhance the bouquet of Adani Road's business in highways which includes eight Hybrid Annuity Mode projects, five Build-Operate-Transfer projects, and one Toll-Operate-Transfer road project in 10 states in India with more than Rs 41,000 crore of projects under management.
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