03 Dec, 2017
New Delhi, December 20, 2017 Cube Highways & Infrastructure Pte. Ltd. (“Cube Highways”) has entered into an agreement with IVRCL Ltd. to acquire 100 percent of Salem Tollways Limited (“STL”) and Kumarapalayam Tollways Limited (“KTL”), both subsidiaries of IVRCL.
As sections of National Highway 544, STL operates a 53.5 kilometer stretch between Salem and Kumarapalayam and KTL operates a contiguous 48.5 kilometer stretch between Kumarapalayam and Chengapalli, in the state of Tamil Nadu. The roads are 20-year toll projects awarded after competitive bidding in 2005 for strengthening and widening two-lane highways to a four-lane configuration. Completed in 2010 and 2009 respectively, both roads have strong and established operational histories.
Commenting on the transaction, Gautam Bhandari, Director of Cube Highways and Partner of I Squared Capital said, “This transaction fits well within our strategy of investing in mature operational assets. The roads increase the geographical diversification of the Cube Highways portfolio and strengthen our presence in southern India.”
“We expect to benefit from significant operational synergies since both the roads are contiguous to each other”, said Dr. Harikishan Reddy, CEO of Cube Highways Advisors. “These roads benefit from a high proportion of captive traffic between two large industrial centres of Coimbatore and Chennai, which is demonstrated by the stable and robust growth on this corridor.”
The completion of the transaction is contingent upon fulfilment of certain customary regulatory and lender approvals.
About Cube Highways: Cube Highways and Infrastructure Pte. Ltd. (Cube Highways) is a Singapore based company investing in road and highway projects, along with select other infrastructure sectors in India. Cube Highways is an independent, professionally-managed platform that leverages the extensive transportation experience of its management advisory and execution teams. The company owns and operates nearly 1,300 lane-kilometers of toll roads. Cube Highways was formed by two leading global financial institutions, I Squared Capital and the International Finance Corporation (IFC).
About I Squared Capital: I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, and transport in North America, Europe, and select high growth economies. The Firm has offices in New York, Houston, London, New Delhi, Hong Kong and Singapore.
Contact: Andreas Moon, Managing Director and Head of Investor Relations, I Squared Capital, +1 (212) 339-5339, andreas.moon@isquaredcapital.com