NCC Infrastructure Holdings Ltd, a subsidiary of NCC Ltd, along with Soma Enterprise Ltd, has executed agreements to sell their stake in Bangalore Elevated Tollway Ltd to India Infrastructure Fund II managed by IDFC Alternatives Ltd.
This move is part of the NCC’s strategic initiatives to divest the road BOT projects. The share purchase pact was struck with India Infrastructure Fund II. Together, NCC and Soma hold 38 per cent equity shareholding in the BETL project.
The divestment entails full exit from BETL, including through sale of preference shares held and repayment of shareholders loans held by both NCCIHL and Soma in BETL. The BETL 34-km road project, including 10-km four-lane elevated highway road connecting Silk Board to Electronic City junction on National Highway 7 in Bengaluru, was executed through the special purpose vehicle.
Enterprise value The project is fully operational since April 2010 and has a 20 year concession period. It was awarded by National Highway Authority of India Ltd.
The enterprise value of the transaction is ₹750 crore and expected to be completed on achieving the conditions agreed upon between the parties, including approvals and other closing conditions and formalities.
For the financial year 2014-15, the turnover and networth contribution of BETL in the consolidated accounts of NCC stood at ₹28.242 crore and ₹40.93 crore respectively.
Aditya Agarwal, Partner at IDFC Alternatives, in a statement said, “Buying control in operational cash generating core assets remains our preferred investment thesis.
We look forward to continuing the calibrated traction on our roads platform and having BETL as the latest in a series of disciplined acquisitions over the past couple of years.”