Madhucon to sell road project to Cube Highways

74% equity stake will be bought up-front

Madhucon Infra Limited, the infrastructure development arm of Hyderabad-based Madhucon Group, today announced the sale of its Madhucon Agra Jaipur Expressways Limited (MAJEL) to Cube Highways and Infrastructure.

"Subject to the closing adjustments, Madhucon Group shall receive a total consideration of Rs 248 crore for the 100 per cent stake, including the operational grants and funding for the entire major maintenance, the company said in a statement.

Cube Highways is a road and transportation investment platform formed by I Squared Capital, a global private equity fund focused on infrastructure investments, and International Finance Corporation(IFC), the private investment arm of the World Bank.

Under the deal, Cube Highways will acquire 74% equity stake up-front, which is expected to close shortly, while the balance 26 per cent equity will be acquired upon receiving the approval of the National High Ways Authority of India(NHAI). Equirus Capital Private Limited has acted as exclusive advisors to Madhucon group for the transaction.

MAJEL is an operational BOT toll project between Bharatpur and Mahwa in the state of Rajasthan. The project has started its commercial operations in May 2009.

Earlier the company had entered a sale agreement for this project with Tata Realty and Infrastructure Limited(TRIL) which was subsequently terminated. The company sources, however, say that they could get better valuations this time around and certain of completing the deal soon.