Bharat Road Network Limited (BRNL), one of India s leading road developers, has completed sale of its entire stake in Shree Jagannath Expressways Pvt Ltd (SJEPL) to India Highway Concession Trust, an infrastructure investment trust set up by .
The stake in the 67-km-long Shree Jagannath Expressway has been sold to an arm of the Canadian infrastructure-focused fund Caisse de dépôt et placement du Québec
Canada’s Caisse de dépôt et placement du Québec (CDPQ) is buying a toll road in India from local developer Bharat Road Network and other shareholders for an unspecified sum, the pension fund’s first transportation infrastructure investment in the major Asian emerging market.
The acquisition of the Shree Jagannath Expressway is being made through CDPQ’s infrastructure investment fund, India Highway Concession Trust, the pension fund and Bharat Road Network say in a joint statement on January 22.
The Indian company is the biggest shareholder in the toll road, with a 40% stake. The identity of the other shareholders was not disclosed.
Canadian institutional fund manager Caisse de dépôt et placement du Québec (CDPQ) through its infrastructure investment trust India Highway Concession Trust has signed an agreement with Bharat Road Network Limited to acquire a 67-kilometre toll road project from Bhubaneswar to Chandikhole, in Odisha.
The enterprise value of the SPV Shree Jagannath Expressway Private Limited is estimated in the range of Rs 1800-2000 crore, people familiar with the development said. The SPV is in charge of the development, operations and maintenance of the project which began in December 2011 with an initial concession period of 26 years.
BRNL is the largest shareholder with a 40 per cent stake. The company is looking to reduce debt and to use the proceeds for organic and inorganic growth. BRNL’s borrowings were at Rs 260 crore as in September 2020.
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