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Adani Road Transport Ltd (ARTL) will acquire Maharashtra Border Check Post Network Ltd (MBCPNL), a subsidiary of Sadbhav Infrastructure Project Limited.
ARTL, which develops, constructs, operates, and manages roads and highway projects in India, will acquire a 49 per cent stake in MBCPNL, with an option to acquire an additional stake subject to regulatory approval.
“India has made tremendous progress in building its road network and interlinking the nation, an essential contributing factor in economic development,” said Krishna Prakash Maheshwari, CEO, ARTL. “As the nation’s largest infrastructure player, the Adani Group’s drive to create a world-class portfolio of road networks is aligned with our mission to become India’s largest road infrastructure owner and operator.”
The acquisition is at an enterprise value of ₹1,680 crore implying EBITDA multiple of 7x. The deal is subject to customary regulatory and lender’s approvals and is expected to close in Q3 FY22.
MBCPNL is an integrated portfolio of 24 border check posts, with exclusive service fee collection rights from commercial vehicles for all traffic routes in and out of Maharashtra until at least 2033. Out of 24 checkposts, MBCPNL has 18 operational, 4 near-operational, one near completion and one under construction.
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