The Brookfield Asset Management Inc. agreed to sell its entire equity shareholding in five road projects to IndInfravit Trust.
The transaction values the five operational road projects, owned by Brookfield arms BIF India Holdings Pte and Kinetic Holdings 1 Pte, at an enterprise value of $1.2 billion (Rs 9,371.4 crore), IndInfravit Trust said in a statement.
The portfolio comprises three toll roads and two annuity roads with nearly 2,400 lane-kilometres in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh, it said. The portfolio has been operational for about nine years, and has an average residual concession period of 20 years.
“This transaction is one of the largest acquisitions in the highways sector in recent times," said Pawan Kant, chief executive officer, LTIDPL IndvIT Services Ltd. The five operating assets are part of the national highways programme, and located in states contributing in total 30% of India's gross domestic product, Kant said.
IndInfravit currently holds a portfolio of 13 operational concessions, according to the statement. This acquisition will expand it into three additional states—Andhra Pradesh, Bihar, and Uttar Pradesh.
Ambit acted as the financial adviser to IndInfravit, while Cyril Amarchand Mangaldas was the legal adviser.
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