"Invit, Backed by KKR, Acquires 12 Road Projects for ₹9,005.70 Crore"

Highways Infrastructure Trust (HIT), supported by KKR, is set to make a significant move in the road and highways sector with the acquisition of 12 road projects from PNC Infratech and PNC Infra Holdings. The enterprise value of the deal is marked at ₹9,005.7 crore, making it one of the largest acquisitions in the sector.

The transaction is contingent upon regulatory and customary conditions, including approvals from regulatory authorities and banks. The road portfolio comprises 11 hybrid annuity concessions from the National Highways Authority of India (NHAI) and one toll road concession from the Uttar Pradesh State Highways Authority (UPSHA). In the hybrid annuity concessions, NHAI covers 40 percent of the total project expenditure, with the developer arranging the remaining funds. The projects span approximately 3,800 lane kilometres across Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka.

Out of the 12 projects, 10 are already operational, while the remaining two are under construction and will be acquired upon commencement of operations. Neeraj Sanghi, CEO of Highway Concessions One, the investment manager of the trust, expressed that this transaction is a defining moment in the roads sector, demonstrating their commitment to growth and delivering value to unit holders. The company looks forward to seamlessly integrating these assets into its existing portfolio.

Gaurav Chandna, Head of Strategic Finance at Highway Concessions One, highlighted the annuity nature of cashflows from the road portfolio, providing further stability to the existing holdings. He added that this transaction is one of the largest acquisitions in the highways sector and aligns with their strategy of acquiring assets with a long concession life, generating predictable distributions for unitholders. With this acquisition and other signed transactions, HIT's assets under management are expected to surpass ₹20,000 crore, marking a significant increase since its initial listing."

BS