I Squared-IFC platform to acquire road asset from HCC

By Ranjani Raghavan

  • 28 Sep 2018
Credit: Shah Junaid/VCCircle

I Squared Capital-backed Cube Highways and Infrastructure Pte. Ltd has agreed to acquire a road asset from a unit of HCC Ltd, the Indian company said on Friday.

Cube Highways will pay an equity consideration of Rs 372 crore to HCC Concessions for Farakka-Raiganj Highways Ltd, HCC said in a stock-exchange filing.

“Certain additional consideration may be paid based on things such as completion of the balance section of the project highway, resolution of certain disputes with the National Highways Authority of India (NHAI) and certain earnouts which, individually or in total,” the statement said.

A person familiar with the deal said that HCC Concessions could expect another 40% upside in payments based on future milestones. 

Edelweiss Financial Services Ltd was the financial adviser on the transaction.

Cube Highways is a joint venture between global infrastructure investment firm I Squared Capital and International Finance Corporation, the private-sector investment arm of the World Bank. As on December 2017, it owned more than 1,700 lane-kilometres of highways in India.