Highway developer Bharat Road Network Ltd BRNL has inked pact with Cube Highways for sale of its operating toll project in Uttar Pradesh. The entire 39 percent stake held by BRNL and its SPV partners will be transferred to Cube Highways, according to the company.
The transaction is valued at Rs 1,600 crore and the proceeds will be used by BRNL towards debt mitigation.
"The Share Purchase Agreement provides for the sale of entire stake in Ghaziabad-Aligarh Expressway Private Limited, the special purpose vehicle (SPV) engaged in the development, operation and maintenance of a 126-kilometre toll road project from Ghaziabad to Aligarh on National Highway 34 ("NH34")," BRNL said in a release on Friday.
The project was awarded to the SPV for a 24-year concession in 2011 and involved strengthening and widening the two-lane highway. Toll collection on this road started in June 2015.
Bajrang Kumar Choudhary, Managing Director, BRNL said, "We continue to explore opportunities for value creation through our portfolio realignment. We remain focused towards optimising value through such strategic exits and are equally committed to raise resources to capitalise on the current and upcoming primary and secondary market opportunities in the highway sector."
BRNL, which is listed on both NSE and BSE, is involved in development, implementation, operation and maintenance of roads and highways projects and has presence in UP, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha.
The company has a project portfolio worth Rs 7,000 crore consisting of six operational BOT projects.
Cube Highways and Infrastructure Pte. Ltd. (Cube Highways) is a Singapore-based company investing in road and highway projects, along with other select infrastructure sectors in India.
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