HCC sells road asset to Singapore's Cube Highways for Rs 3.7 bn

Company says additional consideration may be paid based on certain developments

Infrastructure developer HCC has signed an agreement with Cube Highways and lnfrastructure II Pte, a Singapore-based entity. to sell its entire stake in Farakka-Raiganj Highways for an equity consideration of Rs 3.72 billion, the company said in a statement to BSE. 

"HCC Concessions, being the infrastructure development arm of the HCC Group, has executed a definitive agreement in respect of 100 per cent stake sale of Farakka-Raiganj Highways Ltd (FRHL), to Cube Highways and lnfrastructure II Pte. Ltd, an entity based in Singapore," HCC said in its statement.

 

On the value for the deal, the company in its statement added, "An equity consideration of Rs 3.72 billion for 100 per cent equity stake (subject to requisite approvals) which will be subject to certain closing adjustments. Further, additional consideration may be paid based on certain developments such as completion of the balance section of the project highway, resolution of certain disputes with the NHAl and certain earnouts which, individually or in aggregate, may have a significant impact on the aforementioned consideration."

According to the BSE statement, Farakka-Raiganj Highways has a turnover of Rs 3.11 Billion and a networth of Rs 1.71 billion. HCC Concessions started operations on this stretch in West Bengal in October 2016 and has a concession period of 30 years. 

Edelweiss Financial Services Ltd is the financial advisor for this transaction.