Adani Road Transport Ltd (ARTL), part of the Adani Group, on August 4 said it will acquire Macquarie Asia Infrastructure Fund's India toll roads in Andhra Pradesh and Gujarat for Rs 3,110 crore.

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The company said it has entered into a definitive agreement to acquire Gujarat Road and Infrastructure Company Ltd (GRICL) (owned 56.8 percent by Macquarie Asia Infrastructure Fund) and Swarna Tollway Private Ltd (STPL) (owned 100 percent by Macquarie Asia Infrastructure Fund).

ARTL will acquire 56.8 percent in GRICL and 100 percent stake in STPL subject to regulatory approval. The transaction is expected to close in September 2022. The deal is subject to customary regulatory and lenders’ approvals.

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STPL has two stretches of toll roads in Andhra Pradesh. First, Tada to Nellore on NH-16 connecting important ports such as Chennai, and Krishnapatnam in Andhra Pradesh, spanning 110 km; and second, Nandigama to Ibrahimpatnam to Vijayawada on NH-65 spanning 48 km, which connects key southern metro cities and provides feeder traffic to NH16.

The GRICL has two stretches of toll roads in Gujarat. First, Ahmedabad to Mehsana on SH-41 spanning 51.6 km with majority passenger traffic connecting important northern Gujarat corridors; and second, Vadodara to Halol on SH-87 spanning 31.7 km which is on Delhi Mumbai Industrial Corridor with proximity to several industries.

Macquarie Asia Infrastructure Fund owns a 56.8 percent stake, IL&FS owns a 26.8 percent stake and the government of Gujarat owns the balance stake. Post-acquisition of the stake in GRICL, ARTL will also evaluate the acquisition of the IL&FS stake in GRICL.

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The acquisition of Macquarie Asia Infrastructure Fund’s toll road portfolio in AP and Gujarat will enhance the bouquet of ARTL’s business in highways, which includes eight hybrid annuity mode projects, five build-operate-transfer (BOT) projects, and one toll-operate-transfer (TOT) road project in 10 states in India with more than Rs 41,000-crore of projects under management.

Adani Road Transport Ltd is a wholly-owned subsidiary of Adani Enterprises Ltd (AEL). It is engaged in the development, construction, operations, and management of roads and highway projects in India.

Krishna Prakash Maheshwari, CEO of ARTL, said the company is committed to the Adani Group’s nation-building initiative with a portfolio of more than 5,000 lane km of highway projects under construction/operation.

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He said, "This is one of the largest portfolios of toll road assets with high quality, strong team, long and robust track record of growth and strong cash flow generation with low leverage."

Deep Gupta, Managing Director and Co-Head of Macquarie Asset Management's Real Assets business in SEA and India, said, "Macquarie Asset Management has been one of the earliest and largest infrastructure managers in India. Over our period of ownership, both STPL and GRICL have undertaken capital expenditure for better user experience and have improved health and safety standards for workers and road users."

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(Edited by : Shoma Bhattacharjee)