GMR Group’s - GMR Highways has signed a definitive agreement with Macquarie SBI Infrastructure Investments and SBI Macquarie Infrastructure Trust (Macquarie SBI) to divest 74% stake in GMR Jadcherla Expressways (GJEL), subject to customary closing conditions. Kotak Investment Banking was the exclusive financial advisor to GMR Highways for the transaction.
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 crore immediately and about Rs 11 crore on completion of certain conditions totaling to Rs 206 crore for the sale of 74% stake. The original invested capital for the corresponding 74% stake was about Rs 146 crore.
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.