Adani Group on Thursday said it will acquire Macquarie Asia Infrastructure Fund’s toll road portfolio in Andhra Pradesh and Gujarat for ₹3,110 crore.
The portfolio of 972 lane km has a long concession life with established traffic in strategically located and important traffic corridors in western and southern India, the group said in a statement.
Adani Road Transport Ltd (ARTL), a wholly owned subsidiary of Adani Enterprises Ltd. (AEL), engaged in the development, construction, operations and management of roads and highway projects in India, has entered into a definitive agreement to acquire Gujarat Road and Infrastructure Company Ltd (GRICL) (owned 56.8% by Macquarie Asia Infrastructure Fund) and Swarna Tollway Private Ltd. (STPL) (owned 100% by Macquarie Asia Infrastructure Fund).
“ARTL will acquire 56.8% in GRICL and 100% stake in STPL subject to regulatory approval. The transaction is expected to close in September 2022,” it added.
The acquisition is at an enterprise value of ₹3,110 crore, according to the statement.
The enterprise value of a company includes the equity value, debt as well as cash with the company. Equity value measures the value of a company’s shares.
STPL has two stretches of toll roads in Andhra Pradesh — Tada to Nellore on NH-16 connecting important ports like Chennai, and Krishnapatnam in Andhra Pradesh, spanning 110 km; and Nandigama to Ibrahimpatnam to Vijayawada on NH-65, spanning 48 km, which connects key southern metro cities and provides feeder traffic to NH 16, the statement said.
GRICL also has two toll roads in Gujarat: Ahmedabad to Mehsana on SH-41 spanning 51.6 km with majority passenger traffic, connecting northern Gujarat corridors and Vadodara to Halol on SH-87, spanning 31.7 km, which is on Delhi-Mumbai Industrial Corridor with proximity to several industries.
“Post-acquisition of the stake in GRICL, ARTL will also evaluate the acquisition of IL&FS stake in GRICL,” the statement said.
Over the years, Adani Enterprises has focused on building emerging infrastructure businesses and divesting them into separate listed entities.
Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory and risk and capital solutions across debt, equity, and commodities.