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HCC Group has signed binding terms with Singapore-based Cube Highways and Infrastructure Pte for the sale of Baharampore-Farakka Highways (BFHL) for ₹600 crore.
The transaction was made by HCC Concessions, a subsidiary of HCC Infrastructure Company, which is a wholly owned subsidiary of Hindustan Construction Company (HCC). The term sheet was signed on February 1, 2022, and the agreement for sale shall be executed after due diligence.
Shareholders of Cube Highways are leading international investors. Consisting of I Squared Capital and a wholly owned subsidiary of Abu Dhabi Investment Authority, Cube Highways invests in road and highway projects and other select infrastructure sectors in India.
“Consideration to be received is ₹600 crore, subject to closing adjustments. Additionally, a loan of up to ₹300 crore is to be availed by securitising part of the material revenue share to be received for the life of the concession. Also, a maximum of ₹200 crore earnout is payable in May 2024 contingent on achieving revenue thresholds,” HCC said in a release.
The 101-km Baharampore-Farakka highway is part of the arterial National Highway 12 (earlier National Highway 34) in West Bengal, connecting Kolkata and Haldia port to North Bengal and northeastern states of India.
Of 101 km, BFHL is currently tolling 90 km and the rest will be tollable after completion in Q4 FY23, which will increase the toll revenue by around 45 per cent.
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