Roads owned by Macquarie will be purchased by Adani Group for Rs 3,110 crore
For about Rs 3,110 crore, Adani Road Transport, a division of Adani Enterprises, would purchase Gujarat Road and Infrastructure Company and Swarna Tollway from Macquarie Asia Infrastructure Fund.
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On August 4, The Adani Group announced that it had signed a contract to buy a portfolio of toll roads that Macquarie had listed for sale for Rs 3,110 crore.
According to a press release from the firm, Adani Road Transport, a division of Adani Enterprises, would purchase Swarna Tollway and Gujarat Road and Infrastructure Company from Macquarie Asia Infrastructure Fund for about Rs 3,110 crore.
Subject to regulatory approval, Adani Road Transport would purchase a 100% share in Swarna Tollway and 56.8% of Gujarat Road and Infrastructure. The deal is anticipated to be finalised in September 2022.
The Adani Group won the assets of the Macquarie Asia Infrastructure Fund over Cube Highways, which is funded by I Squared Capita and KKR, a private equity group.
According to Krishna Prakash Maheshwari, CEO of Adani Road Transport, "This is one of the largest portfolios of toll road assets with high quality, excellent staff, long and solid track record of growth, strong cash flow generation with low borrowing."
According to estimates, Macquarie wanted an enterprise value of Rs 4,200 crore for the roads.
In Andhra Pradesh, Swarna Tollway is the owner of two segments of toll roads: Tada to Nellore on NH-16, which is 110 km long, and Nandigama to Ibrahimpatnam to Vijayawada on NH-65, which is 48 km long. In Gujarat, there are two toll road segments: Ahmedabad to Mehsana on SH-41, which is 51.6 km long, and Vadodara to Halol on SH-87, which is 31.7 km long.
According to Adani Group, the portfolio had an EBITDA of Rs 456 crore during the previous 12 months and had about Rs 165 crore in net debt.
In India, Macquarie has already made money off of one other pair of highways. In order to give the investor a way out, KKR negotiated a contract in December to buy five toll roads from Ashoka Concessions, where Macquarie is a sizable minority shareholder, for Rs 1,337 crore.
The portfolio of toll roads owned by Macquarie Asia Infrastructure Fund in Andhra Pradesh and Gujarat will be added to Adani Road's portfolio of highway projects, which already includes eight Hybrid Annuity Mode projects, five Build-Operate-Transfer projects, and one Toll-Operate-Transfer road project in 10 Indian states with a total project value of more than Rs 41,000 crore.
