Epic Concesiones Pvt Ltd, a portfolio company of Edelweiss Alternatives-backed Infrastructure Yield Plus Strategy, will acquire a 100 percent stake in L&T Infrastructure Development Projects Limited (L&T IDPL) at an enterprise value of Rs 6,000 crore, the two companies have said.
Edelweiss Alternatives -- an alternative investment fund management platform -- said in a statement that the transaction also involves absorbing the operating team.
L&T IDPL portfolio comprises eight roads, spanning 4,900 lane-km and one 960 ckm power transmission asset. The transaction is subject to customary closing conditions including applicable regulatory and other approvals, a release said.
“We look forward to acquiring these high-quality assets built by L&T, a renowned engineering and construction major. These assets have a proven track record of operations, are geographically dispersed and have long residual life, which is consistent with our investment strategy,” Infrastructure Yield Strategy Managing Director Sreekumar Chatra said.
L&T holds a 51 percent stake in L&T IDPL and Canada Pension Plan Investment Board the remaining 49 percent.
The acquisition was in line with the infrastructure yield strategy to generate regular distributions for investors by acquiring quality operating infrastructure assets with strong cash flows and unlocking value through active asset management, Edelweiss Alternatives said.
Following the acquisition, the infrastructure platform would scale up to 26 assets with cumulative annual revenue of nearly Rs 2,700 crore, the statement said.
It would be a diverse mix of power transmission and substations, renewables and highway assets, spread geographically. These would comprise over 5,100 lane-km of roads, 1,800 ckm of power transmission assets, and 813 MWp of renewable, it said.
“Asset monetization and recycling capital holds the key to value creation and development in infrastructure,” Subahoo Chordia, Head, Infrastructure Funds, Edelweiss Alternatives said.
The company would continue to provide solutions to construction companies and developers to recycle capital to fund their growth, he said.
“On completion of this acquisition, there will be a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making us a leading infrastructure investor in India,” Chordia said.
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