IDFC Alternatives, the private equity (PE) arm of IDFC Ltd, has agreed to acquire stakes held by NCC Infrastructure Holdings LTD (NCCIHL) and Soma Enterprise Ltd in the Bangalore Elevated Tollway Ltd (BETL) highway project at an enterprise value of approximately Rs 750 crore, according to a press statement.
The deal is through India Infrastructure Fund II, which is managed by IDFC Alternatives, the statement said.
NCCIHL (together with NCC Ltd) and Soma hold 38 per cent stake each in the highway project which became operational in April 2010 and cost Rs 765 crore. Infrastructure Leasing and Financial Services Ltd (IL&FS) is the other partner in the project.
Blackstone-backed NCC last year said that it is divesting stakes in road projects to bring down its debt.
BETL is a special purpose vehicle which has developed and is operating a 34 km road, including a 10 km four-lane elevated highway project connecting Silk Board to Electronic City junction, on NH-7 in Bangalore.
For the financial year 2014-15, the turnover and net worth contribution of BETL were Rs 28.42 crore and Rs 40.93 crore, respectively.
“Buying control in operational cash generating core assets remains our preferred investment thesis. We look forward to continuing the calibrated traction on our roads platform and having BETL as the latest in a series of disciplined acquisitions over the past couple of years,” Aditya Aggarwal, partner at IDFC Alternatives, said.
EY (formerly Ernst & Young) acted as the sell-side M&A advisor on this transaction.