Adani Road Transport Ltd (ARTL) has inked a definitive agreement with Macquarie Asia Infrastructure Fund to acquire the latter’s 56.8 per cent stake in Gujarat Road and Infrastructure Company Ltd (GRICL) and 100 per cent stake in Swarna Tollway Private Ltd (STPL).
According to a release issued by Adani Group on Thursday, the acquisition — expected to close in September — is at an enterprise value of Rs 3,110 crore.
GRICL has two stretches of toll roads in Gujarat, including Ahmedabad to Mehsana on state highway-41 and Vadodara to Halol on state highway-87. Similarly, STPL has two stretches of toll roads in Andhra Pradesh, including National Highway-16 from Tada to Nellore and Nandigama to Ibrahimpatnam to Vijayawada on NH-65.
Apart from the 56.8 per cent stake it plans to acquire in GRICL, ARTL — a wholly-owned subsidiary of Adani Enterprises Ltd — will evaluate acquisition of another 26.8 per cent stake owned by IL&FS in the former. The remaining stake in GRICL is owned by the Gujarat government.
GRICL was promoted jointly by the Gujarat government and IL&FS for widening two road stretches and converting them to four lane toll roads.
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The acquisition of Macquarie Asia Infrastructure Fund’s toll road portfolio in Andhra Pradesh and Gujarat will enhance the bouquet of ARTL’s business in highways, which includes eight hybrid annuity mode (HAM) projects, five build-operate-transfer (BOT) projects, and one toll-operate-transfer (TOT) road project in 10 states in the country with more than Rs 41,000 crore of projects under management.
ARTL CEO Krishna Prakash Maheshwari said, “ARTL is committed to the Adani Group’s nation building initiative with a portfolio of more than 5,000 lane km of highway projects under construction/operation. 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.”