Dilip Buildcon agrees to sell five HAM projects to Cube Highways and Infrastructure III

Dilip Buildcon has entered into Agreements dated 31 August 2019 with Cube Highways and Infrastructure III (Cube) for sale of five under construction Hybrid Annuity Model (HAM) projects.

Pursuant to this, the Company has agreed to sell to Cube its entire shareholding in five projects in phased manner, in accordance with share holding transfer restrictions set out in the Concession Agreement(s) executed between National Highways Authority of India (NHAI) and the project SPVs, and approval of lenders and NHAI.

The total equity valuation of the said five projects is expected to be Rs 702 crore on required equity (equity share capital and promoter's unsecured loan) of Rs Rs 568 crore.

In addition, both the parties may mutually agree for investment of up to 49% of the required equity of the projects by Cube, in the form of optionally convertible debentures, during the construction period, subject to certain conditions. In such case, DBL will not be investing further equity and DBL's equity valuation is expected to be around Rs 409 crore on DBL's 51% investment of Rs 290 crore.

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