Gayatri Projects (GPL) and its subsidiary Gayatri Infra Ventures (GIVL) along with NCC have executed a share purchase agreement with Cube Highways and Infrastructure to sell their entire 100% shareholding in Western UP Tollway (WUPTL). The transaction is expected to complete within 1-2 months, after which Cube Highways and Infrastructure, a unit of global infrastructure investment manager, I Squared Capital, will emerge the sole owner of WUPTL.
WUPTL is a four lane highway project connecting the Meerut - Muzaffarnagar section (from km 52.25 to km 131) of NH 58 in the state of Uttar Pradesh (UP) under the National Highway Development Project (NHDP). The project has been fully operational since October 2011 with 20 years tolling period based on a concession agreement executed with National Highway Authority of India (NHAI).
This divestment move is in line with GPL’s management efforts to monetize its road investments, which enables the company to reduce its debt burden and to go forward with a more asset-light approach.
