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Essel Group agree to sell 3 road assets to CDPQ

Infra News - Published on Mon, 20 May 2019

Image Source: The Property Times
Essel Infraprojects Ltd has agreed to sell three of its road projects to Caisse de dépôt et placement du Québec (CDPQ), Canada’s second-largest fund manager, said two people aware of the development, as the Subhash Chandra-promoted Essel Group company seeks to trim its massive debt. The assets are expected to fetch a combined enterprise value of INR 3,300-3,500 crore, said the first person cited above, requesting anonymity.

The person said that “Essel is likely to formally announce the deal within the next three to four weeks. The entire proceeds of the sale will be used towards debt repayment."

However, the three projects comprise toll roads in Madhya Pradesh (Lebad-Jaora state highway), Karnataka (Navayuga Devanahalli Tollway near Bengaluru airport, a national highway) and Telangana (Essel Dichpally Tollway, a state highway).

The first person said that “With the term sheet signed, Essel will now have to get the clearances from the national and state authorities for transfer of ownership."

In April, Mint reported that both CDPQ and Cube Highways, the roads platform of infrastructure investor I Squared Capital, were doing due diligence on Essel Infra’s road projects.

Essel Infra has 14 road projects in its portfolio, of which six are national highways and the rest state highways, according to the company’s website. The company had a debt of INR 11,466 crore as of December 2018.

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Posted By : Rabi Wangkhem on Mon, 20 May 2019
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