Adani Group to acquire Macquarie Asia's toll roads in Andhra Pradesh, Gujarat for Rs 3,110 crore

New Delhi: Adani Enterprises Ltd (AEL) said on Thursday (August 4) its unit will acquire Macquarie Asia Infrastructure Fund's (MAIF) India toll roads in Andhra Pradesh and Gujarat for Rs 3,110 crore.

The portfolio of 972 lane km has a long concession life with established traffic in strategically located and important traffic corridors in western and southern India, AEL said in a regulatory filing to the stock exchanges today.

Adani Road Transport Ltd (ARTL), a wholly owned subsidiary of Adani Enterprises Ltd (AEL), engaged in development, construction, operations and management of roads and highway projects in India, has entered into a definitive agreement to acquire Gujarat Road and Infrastructure Company Ltd (GRICL) (owned 56.8 per cent by Macquarie Asia Infrastructure Fund) and Swarna Tollway Private Ltd (STPL) (owned 100 per cent by Macquarie Asia Infrastructure Fund)," it said.

Billionaire Gautam Adani-controlled Adani Group's flagship, AEL added: "ARTL will acquire 56.8 per cent in GRICL and 100 per cent stake in STPL subject to regulatory approval. The transaction is expected to close in September 2022."

The stake will be bought at an enterprise value of of Rs 3,110 crore, as per the statement.

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

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

Post-acquisition of the stake in GRICL, ARTL will also evaluate the acquisition of IL&FS stake in GRICL, the statement mentioned.

Krishna Prakash Maheshwari, CEO of ARTL, said: “ARTL 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 and operation. 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."

Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory and risk and capital solutions across debt, equity, and commodities.