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Macquarie acquires 74% stake in Indian highway project

14 Feb 2013

india2_lrgInfrastructure investor Macquarie SBI Infrastructure Fund (MSIF) and
SBI Macquarie Infrastructure Trust (SMIT) have acquired a 74 per cent stake in highway operator GMR Jadcherla Expressways (GJEL) for Rs2.06bn (£24.6m) from India’s GMR Group.

GMR initially invested £17.4m in the stake.

GJEL operates the Farukhnagar-Jadcherla highway in Andhra Pradesh under an agreement signed with National Highways Authority of India (NHAI). The project started commercial operations in February 2009.

Under the terms of the deal, GMR Group will receive a total consideration Rs2.06bn of which Rs1.95bn is payable immediately.

This is Macquarie SBI’s second deal with GMR following its $200m investment in GMR Airports in 2011.

Suresh Goyal, chief executive of Macquarie SBI Infrastructure Management, said, “This transaction, the seventh that MSIF has completed to date, demonstrates the successful execution of MSIF’s investment strategy in the Indian infrastructure sector, including the roads sector.

“MSIF invests in a diverse range of assets alongside leading Indian developers who have built high quality assets that provide attractive risk adjusted returns.”

The Macquarie SBI Infrastructure Fund is managed by the Macquarie SBI joint venture located in Singapore. The fund has around $910m in total capital commitments representing global financial investors from outside of India.

Macquarie SBI has assets in the telecom towers, airports, power, roads and renewable energy sectors.

Kotak Investment Banking was the exclusive financial advisor to GMR Highways Ltd for the deal.

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