Bharat Road Network Ltd (BRNL) along with its partners inks deal for complete transfer of ownership in an operating toll road project from Ghaziabad to Aligarh on National Highway 34. The transaction is done at an enterprise value of around ₹1,600 crore.

The sale would help BRNL to reduce the debt and also capitalise on the growth opportunities in the highways sector, said a press statement issued by the company.

The transaction is subject to regulatory approvals and other closing conditions.

The company has entered into an agreement with Cube Highways, a portfolio company of I Squared Capital, for the complete transfer of ownership in the operating toll road project in Uttar Pradesh. BRNL currently holds 39 per cent stake in the project.

Sale pact

The share purchase agreement provides for the sale of entire stake in Ghaziabad Aligarh Expressway Private Ltd, the special purpose vehicle (SPV) engaged in the development, operation and maintenance of a 126-kilometre toll road project from Ghaziabad to Aligarh on National Highway 34. The project has been granted a 24-year concession in 2011 for strengthening and widening the two-lane highway. Toll collection on this road started in June 2015.

“We continue to explore opportunities for value creation through our portfolio realignment. We remain focused towards optimizing value through such strategic exits and are equally committed to raise resources to capitalise on the current and upcoming primary and secondary market opportunities in the highway sector,” Bajrang Kumar Choudhary, Managing Director, BRNL said in the statement.

BRNL, which is a road BOT company is primarily focused on development, implementation, operation and maintenance of roads and highways projects in several states in the country with projects spread across Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha. BRNL has a project portfolio worth ₹7,000 crore consisting of six operational BOT projects, covering 2,095 lane kilometre.

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