BRNL deal with Cube Highways for sale of a road project in UP

Bharat Road Network Limited, along with its partners, has signed an agreement with Cube Highways, a portfolio company of I Squared Capital, for complete transfer of ownership in an operating toll road project in Uttar Pradesh.

The transaction is subject to regulatory approvals and other closing conditions, said a press release. BRNL currently holds 39 per cent stake in this project, it added.

The share purchase agreement provides for the sale of entire stake in Ghaziabad Aligarh Expressway Private Limited, the special purpose vehicle (SPV) engaged in the development, operation and maintenance of a 126-kilometre toll road project from Ghaziabad to Aligarh on NH34.

The project was granted a 24-year concession in 2011 for strengthening and widening the two-lane highway. Toll collection on this road started in June 2015.

Speaking on the development, Bajrang Kumar Choudhary, Managing Director, BRNL, said: “We continue to explore opportunities for value creation through our portfolio realignment. We remain focused towards optimising 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.”