NCC along with Gayatri Projects (GPL) and its subsidiary Gayatri Infra Ventures (GIVL) has executed a definitive agreement to sell their 100% shareholding in Western UP Tollway (WUPTL) to Cube Highways and Infrastructure. This is a part of strategic initiatives taken by the company to divest its stake held in road projects. Ernst & Young acted as the exclusive M&A advisor to the sellers on this transaction.
NCC Group holds 51% and Gayatri’s subsidiary ‘GIVL’ holds 49% of the stake in WUPTL. The transaction is taking place for an enterprise value of Rs 575 crore and is subject to certain closing adjustments. The transaction is expected to be completed within 2 months on achieving the Conditions Precedent agreed between the parties. For the Financial Year 2014-15 the turnover and net worth contribution of WUPTL in the consolidated accounts of NCC stood at Rs108.05 crore (1.12%) and Rs120.80 crore (3.55%) respectively.
WUPTL is an SPV promoted to develop the 78 km four lane highway project connecting Meerut - Muzaffarnagar section of NH 58 in the state of Uttar Pradesh (UP) under the National Highway Development Project (NHDP). The project is fully operational since October 2011, with 20 years concession period (including construction period) based on a concession agreement executed with National Highway Authority of India (NHAI).
| Company Name | CMP |
|---|---|
| Larsen & Toubro | 4094.95 |
| Rail Vikas Nigam | 303.10 |
| NCC | 161.30 |
| KEC International | 580.10 |
| Kalpataru Projects | 1232.90 |
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