Bharat Road Network has signed an agreement with Singapore-based Cube Highways and Infrastructure, a portfolio company of I Squared Capital, for ownership transfer in an operating toll road project in Uttar Pradesh.
The deal is for the sale of the entire stake in Ghaziabad Aligarh Expressway, a special purpose vehicle (SPV) engaged in the development, operation and maintenance of the 126-kilometre road from Ghaziabad to Aligarh on National Highway 34.
Bharat Road Network currently holds 39% stake in this project while the rest is with other shareholders.
The transaction will be done at an enterprise value of roughly Rs 1,600 crore.
Bharat Road Network said that the deal reaffirms its commitment to reducing debt and capitalising on growth opportunities in the highways sector.
The project was granted a 24-year concession in 2011 for strengthening and widening the two-lane highway. Toll collection on this road started in June 2015.
Bharat Road Network is a road BOT (build, operate and transfer) company focused on development, operation and maintenance of national and state highways in Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha.
Bharat Road Network has a project portfolio worth Rs 7,000 crore consisting of six operational BOT projects, covering 2,095 lane kilometres across six states in India.
Cube Highways invests in road and highway projects, along with other select infrastructure sectors in India.