KNR Constructions, Patel Engg sell road assets for Rs 850 cr

Patel Engineering & KNR Constructions today inked a share purchase pact with an Essel Group company to sell their entire equity stake in two highway assets for Rs 850 crore.
"Patel Engineering Ltd (Patel) & KNR Constructions Ltd (KNR) today signed a share purchase agreement to sell their entire equity stake in two Road BOT (build, operate and transfer) assets viz Patel KNR Infrastructure Ltd (PKIL) and Patel KNR Heavy Infrastructure Ltd (PKHIL), to an Essel group company," Equirus Capital, which acted as transaction advisor, said in a statement.
Both are operational annuity-based BOT assets awarded by NHAI and the transacion is likely to close within the next 2-3 months, it said.

Ajay Garg, Managing Director, Equirus Capital said, "The transaction is in line with the trend seen across the roads sector where institutional money is chasing operational cash-flows and helping in debt reduction of infrastructure conglomerates."
Apart from Equirus Capital, exclusive advisors to the sellers on this transaction, Cyril Amarchand Mangaldas (Delhi) were the legal advisors whereas Luthra and Luthra law offices advised the buyers on the transaction.
Rupen Patel, Managing Director of Patel, said the sale of these assets is part of the monetisation plan to improve financial liquidity for ongoing operations.
K Jalandhar Reddy, Executive Director of KNR informed that the BOT asset sale is part of KNR Group's strategy to focus on their EPC business.