BackAdani Group to acquire Macquarie Asia's toll road in AP, Gujarat for ₹3,110 cr
The Adani Group will acquire MAIF's India toll roads in AP and Gujarat for ₹3,110 crore
PremiumAdani Enterprises arm Adani Road Transport Ltd will acquire a 100% stake in Andhra Pradesh toll roads portfolio (STPL) and 56.8% stake in Gujarat toll roads portfolio (GRICL), from Macquarie Asia Infrastructure Fund (MAIF).
“Adani Road Transport Ltd (ARTL), a wholly owned subsidiary of Adani Enterprises Ltd (AEL), engaged in development, construction, operations and management of roads and highway projects in India, has entered into a definitive agreement to acquire Gujarat Road and Infrastructure Company Ltd (GRICL) (owned 56.8% by Macquarie Asia Infrastructure Fund) and Swarna Tollway Private Ltd (STPL) (owned 100% by Macquarie Asia Infrastructure Fund)," the company said in a statement.
ARTL will acquire 56.8% in GRICL and 100% stake in STPL subject to regulatory approval. The transaction is expected to close in September this year.
The acquisition is at an enterprise value of ₹3,110 crore. The portfolio has an LTM EBITDA of ₹456 crore with approximately ₹165 crore of net debt.
This translates into an EV/EBITDA multiple of approximately 6.8x. The deal is subject to customary regulatory and lender’s approvals.
STPL has two stretches of toll roads in Andhra Pradesh: i) Tada to Nellore on NH-16 connecting important ports such as Chennai, and Krishnapatnam in Andhra Pradesh, spanning 110 km and
ii) Nandigama to Ibrahimpatnam to Vijayawada on NH-65 spanning 48 km, which connects key southern metro cities and provides feeder traffic to NH16.
Together the STPL portfolio has demonstrated strong historical revenue growth.
GRICL has two stretches of toll roads in Gujarat: i) Ahmedabad to Mehsana on SH-41 spanning 51.6 km with majority passenger traffic connecting important northern Gujarat corridors and
ii) Vadodara to Halol on SH-87 spanning 31.7 km which is on Delhi Mumbai Industrial Corridor with proximity to several industries.
Together the GRICL portfolio has demonstrated strong historical revenue growth. Macquarie Asia Infrastructure Fund owns 56.8% stake, IL&FS owns 26.8% stake and Govt of Gujarat owns the balance stake.
Post acquisition of the stake in GRICL, ARTL will also evaluate the acquisition of IL&FS stake in GRICL.
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