Grapevine: Temasek weighs Fullerton India stake sale; Cube Highways plans InvIT
Photo Credit: Reuters

Fullerton Financial Holdings Pte. Ltd, a unit of Singapore state investment firm Temasek, is looking to sell a stake in its India non-banking subsidiary, media reports said.

Fullerton Financial aims to raise about $350 million (Rs 2,510 crore) by selling the stake in Fullerton India Credit Company, Bloomberg reported, citing people familiar with the matter.

The Economic Times separately reported that the deal could value Fullerton India up to Rs 17,500 crore ($2.5 billion).

Citing multiple people aware of the situation, the report said feelers have been sent to private-sector lenders Bandhan Bank, Kotak Mahindra Bank and IndusInd Bank. Private equity firms and non-banking lenders will also be tapped, it added.

Meanwhile, Singapore-based Cube Highways and Infrastructure Pte Ltd, which owns and operates toll roads in India, is in initial talks with potential investors to sell its operational assets, The Economic Times reported.

Citing three people with direct knowledge of the development, the report said that Cube Highways is in discussions with Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), Abu Dhabi Investment Authority (ADIA) and Ontario Teachers’ Pension Plan Board.

Cube Highways may also hive off its operating assets into an infrastructure investment trust (InvIT) and place it privately with the investors, the report said. The InvIT could be valued as much as $3 billion, it added.

Cube Highways has 28 road projects across India. It has invested over $3 billion in India’s road sector so far.

The company is a joint venture between infrastructure-focussed private equity firm I Squared Capital and International Finance Corporation, the private-sector investment arm of the World Bank. It roped in two more investors in 2017 — ADIA in November and a consortium led by Japan’s Mitsubishi Corp the following month.

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