New Delhi, Feb 14 (IBNS) GMR Highways Ltd., a unit of the Bangalore-based GMR Group, on Thursday said it has signed a definitive agreement with Macquarie SBI Infrastructure Investments Pte Ltd and SBI Macquarie Infrastructure Trust ('Macquarie SBI') to divest 74% stake in GMR Jadcherla Expressways Ltd ('GJEL'), subject to customary closing conditions.
GJEL is operating the Farukhnagar-Jadcherla highway in Andhra Pradesh, under a concession agreement signed with NHAI.
The project commenced commercial operations in February 2009. GMR Group will receive consideration of about Rs. 195 Cr immediately and about Rs.11 Cr on completion of certain conditions totaling to Rs. 206 Cr for the sale of 74% stake.
The original invested capital for the corresponding 74% stake was about Rs. 146 Cr.
Macquarie SBI, which is one of the largest India focused infrastructure funds, has expanded its roads portfolio with this investment and has a well-diversified portfolio with assets in the telecom towers, airports, power, roads and renewable energy sectors.
Kotak Investment Banking was the exclusive financial advisor to GMR Highways Ltd for the transaction.
Subba Rao Amarthaluru, Group CFO of GMR Group, said: "This divestment of majority stake in our Jadcherla Road Project is the first step in this direction and reinforces the GMR Group's Asset Light and Asset Right philosophy.
"The GMR Group will continue to focus in adopting this approach in other Businesses as well. This partnership will also strengthen the relationship with Macquarie SBI. This is the second investment Macquarie SBI is making in GMR Group after their investment in GMR Airports a few years ago."
Suresh Goyal, Chief Executive Officer of Macquarie SBI Infrastructure Management Private Limited, the adviser to MSIF's manager, said: "This transaction, the seventh that MSIF has completed to date, demonstrates the successful execution of MSIF's investment strategy in the Indian infrastructure sector, including the roads sector.
"MSIF invests in a diverse range of assets alongside leading Indian developers who have built high quality assets that provide attractive risk adjusted returns."