Infrastructure giant PNC Infratech Ltd has officially confirmed the finalization of definitive agreements with Highways Infrastructure Trust (HIT) for the divestment of 12 road assets. The deal, valued at an enterprise value of ₹9,005.7 crore, marks a significant step in aligning with the company’s strategic goal of recycling capital invested in operating road assets to support the ambitious growth vision outlined by the Government of India for this sector.
Key Details of the Deal
The transaction includes 11 national highway (NH) hybrid annuity mode (HAM) assets and one state highway BOT toll asset, covering an extensive stretch of approximately 3,800 lane km across Uttar Pradesh, Madhya Pradesh, Karnataka, and Rajasthan. The equity value of the transaction, encompassing cash, stands at ₹2,902 crore on an invested equity of ₹1,740 crore.
The agreement is contingent on regulatory approvals and customary conditions, emphasizing the regulatory compliance aspect of the strategic move.
Industry Leaders Facilitate the Deal
KPMG India Services LLP played a crucial role as the exclusive financial advisor in facilitating this substantial transaction, while Shardul Amarchand Mangaldas & Co contributed as the legal advisor.
PNC Infratech’s Vision
Yogesh Jain, Managing Director of PNC Infratech, expressed pride in announcing this landmark transaction, emphasizing its significance as one of the largest in terms of value in the Indian roads sector. He acknowledged the confidence shown by HIT in the company’s assets, showcasing continued investor interest in the sector for high-quality portfolios.
Market Response
Shares of PNC Infratech Ltd witnessed a positive response, concluding at ₹387.50, representing a gain of 2.62% on the BSE.
