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    RInfra’s sale of Delhi-Agra toll road receives NHAI approval

    Synopsis

    Reliance Infrastructure will use 100 per cent of the proceeds from the sale to pay lenders .

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    The deal was struck at an enterprise value of ₹3,600 crore of which Cube Highways will pay ₹1,700 crore as equity consideration to Reliance Infrastructure.

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    Reliance Infrastructure has received in-principle approval from National Highways Authority of India (NHAI) for the sale of its Delhi-Agra (DA) toll road to a Singapore-based investor, according to a company official.

    The Anil Ambani company had signed an agreement for the sale of the 180-kilometre toll road with Cube Highways and Infrastructure III, a company in which Singapore-based I Squared Capital and Abu Dhabi Investment Authority are co-investors.

    The deal was struck at an enterprise value of ₹3,600 crore of which Cube Highways will pay ₹1,700 crore as equity consideration to Reliance Infrastructure and absorb ₹1,900 crore of debt on the books of the special purpose vehicle that owns the toll road.

    Reliance Infrastructure will use 100% of the proceeds from the sale to pay lenders and reduce the debt of the company, according to the official.

    “The sale of DA toll road is a first of many liquidity events to move the company towards becoming debt-free in 2020. We are grateful to all our creditors and various stakeholders for having reposed their faith in the business and management team”, a company spokesperson said.

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    1 Comment on this Story

    Gautam Jain211 days ago
    It is good initiative by NHAI to complete the balance four lanning of all major metros mumbai Delhi Kolkata and Chennai from out side and inside
    The Economic Times