 "Spain's Abertis")
Spain's Abertis, an international operator of toll roads, will buy stakes in Trichy Tollway Private Limited (TTPL) and Jadcherla Expressway Private Limited for $128 million, the company said in a statement on Tuesday. Abertis has entered into an agreement with SBI-Macquarie Infrastructure Trust and Macquarie SBI Infrastructure Investments Pte Ltd to pick up stakes in these assets.
"The Group will control 100% of the concessionaire Trichy Tollway Private Limited (TTPL), which manages the NH-45, and 74% of Jadcherla Expressway Private Limited (JEPL), which holds the concession for NH-44, "the company said in its media statement.
The two concessions run until 2026.The acquisition will mark the toll road operator's entryinto India and is in time with the country's highway authority's plans to bidout toll collection at its existing public funded operational road projects ona toll-operate-transfer (TOT) model.
"This deal is an important step for Abertis in geographic diversification of its business, moving into a growing market and one of the countries with the strongest growth potential in the world. This transaction bolsters the Group's international leadership status and balances its exposure to markets all around the world," said Francisco Reyn, vice-chairman and chief executive officer, Abertis.
At present, Abertis has 8,650 kilometres of toll roads under management. This asset sale also provides SBI-Macquarie Infrastructure Trust and Macquarie SBI Infrastructure Investments Pte Ltd an opportunity to unlock value from investments it made in 2013.
SBI Macquarie Infrastructure Trust had acquired a 74% stake in Trichy Tollways from IJM of Malaysia and Shapoorji Pallonji in November 2013 for Rs 275 crore . Macquarie SBI InfrastructureInvestments Pvt Ltd had bought a 74% stake in GMR Jadcherla Expressways Ltd in February 2013 for Rs 206 crore.
The transaction, once complete, would help Abertis consolidate around $30 million in annual revenue, $25 million in annual earnings before interest, tax, depreciation andammortisation and $85 million of net debt, the statement said.
