Grapevine: Tatas-Petronas deal falls through; NIIF eyes some Ashoka Concessions roads
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The Tatas have called off their near $2 billion (Rs 15,019 crore) investment deal with Malaysian state-owned Petronas in Tata Power’s proposed renewable energy infrastructure investment trust (InvIT) after a year of negotiations, people told The Economic Times. 

Under the deal, Petronas had agreed to invest up to Rs 3,800 crore upfront for about 35% stake in the InvIT at a $2.5 billion enterprise valuation.

Following Petronas, a clutch of other institutional and financial investors was also to come on board as part of a consortium. 

The Indian conglomerate has now gone back to the drawing board to explore an initial public offering (IPO) for the business. Tata Power is likely to create an umbrella entity. 

NIIF may buy roads

India’s quasi-sovereign wealth fund, National Investment and Infrastructure Fund (NIIF), may buy some roads of Ashoka Concessions for an equity value of about $100 million (about Rs 750 crore), two people told Mint. 

The proposed deal is only for the eight under-construction hybrid annuity model (HAM) assets held by Ashoka Concessions. 

In February 2021, people told Mint that investors including Brookfield, NIIF and private equity firm Actis Llp had placed bids to buy Ashoka Concessions in a deal with an implied equity value of around $350 million (about Rs 2,545 crore) and an enterprise value of $1.2 billion (about Rs 8,728 crore).

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