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Bharat Road to sell 39% stake in Ghaziabad Aligarh Expressway

The enterprise valuation for GAEPL is Rs 1,830 crore based on valuation in December 2018. The actual valuation cannot be ascertained at present, as it would depend on adjustments at the time of handover

twitter-logo BusinessToday.In        Last Updated: May 6, 2019  | 10:31 IST
Bharat Road to sell 39% stake in Ghaziabad Aligarh Expressway
BRNL will also be able to pare about Rs 600 crore debt burden

Bharat Road Network Ltd (BRNL) is planning to sell its 39 per cent stake in road project company Ghaziabad Aligarh Expressway Private Ltd (GAEPL). To this end, BRNL has reportedly entered into a share purchase agreement with Cube Highways and Infrastructure Pte Ltd, a Singapore-based investment firm specialising in infrastructure sector.

The deal subject to applicable regulatory and other approvals, is expected to result in a net income of about Rs 150 crore for BRNL.

The enterprise valuation for GAEPL is Rs 1,830 crore based on valuation in December 2018, news agency PTI reported. The actual valuation cannot be ascertained at present, as it would depend on adjustments at the time of handover, it further added.

GAEPL has a debt of about Rs 1,500 crore in its books, the report further added.

BRNL will also be able to pare about Rs 600 crore debt burden, which had increased to Rs 1,400 crore, accumulated out of its investment in various companies. This would be a major relief to the Kolkata-based road infrastructure company at a time when firms are grappling to reduce debt levels, the PTI report said.

BRNL had recently said that one of its arms won an arbitration award of Rs 322.77 crore against the National Highways Authority of India (NHAI) for a project in Odisha.

(With PTI inputs)

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