Global infrastructure investor Macquarie Asset Management (MAM) will sell its Toll-Operate-Transfer (ToT) 1 road assets in India to the highest bidder VINCI Highways, the French acquirer said Thursday.
The transaction values the assets around $1.6 billion ( ₹15,000 crore in enterprise value).
Other bidders for the portfolio included Edelweiss-backed Sekura Roads and KKR-backed Vertis Infrastructure Trust.
The portfolio comprises nine toll road projects spanning 648 km across Andhra Pradesh and Gujarat. These assets are housed under Safeway Concessions Pvt Ltd, a platform created by Macquarie, and are backed by its Asia Infrastructure Fund 2 (MAIF 2) and MAIF 3.
Macquarie had acquired these roads in 2018 under India’s first Toll-Operate-Transfer (ToT) auction for ₹9,681 crore, about 1.5 times the base price set by the National Highways Authority of India (NHAI).
Macquarie Asset Management (MAM) has shortlisted three bidders — VINCI Highways, Sekura Roads, and Vertis Infrastructure Trust, ET first reported in November.
For VINCI, the acquisition would mark a return to India’s road sector after the French company exited the market in 2015, citing policy uncertainties. VINCI Highways, a subsidiary of VINCI Concessions, has been evaluating opportunities to re-enter the Indian market after nearly a decade. Globally, VINCI operates and manages a 3,750-km road network spanning 14 countries.
The acquisition of a highway portfolio of this size and quality is a rare opportunity in a fast-growing market. It is perfectly in line with VINCI’s long-term investment strategy in mobility infrastructure, it said.
At this stage, VINCI Highways has identified optimisation opportunities across the portfolio both financially and operationally (operational processes, road safety, environmental performance). Further opportunities are expected in toll digitalisation as India transitions to a free-flow system, it said.
In this regard, VINCI Highways has recognised expertise in the country through its subsidiary ViaPlus, which employs nearly 400 people in Hyderabad.
15X EBITDA
The transaction values Safeway Concessions based on an Enterprise Value of approximately Rs15,000 crore, at a multiple of around 15x Ebitda.
The final amount of the transaction and the amount of the equity investment will be determined after usual adjustments at the closing date and finalization of the financial structuring of the transaction, it added.
The transaction is subject to approval by the relevant Indian authorities and financial closing is expected by the end of 2026.
A key attraction for investors is the 30-year concession period, which offers strong long-term revenue visibility. The Andhra Pradesh stretches, part of the Golden Quadrilateral’s NH-16 corridor, contribute nearly 71% of total toll revenues and serve key ports and industrial clusters. The Gujarat stretches provide connectivity to the ceramic hub of Morbi as well as major ports such as Kandla and Mundra.
These Andhra Pradesh sections draw traffic from industrial centres in Visakhapatnam, East Godavari, West Godavari, Srikakulam and Ganjam districts, while also linking to major ports in Visakhapatnam, Kakinada, Krishnapatnam and Gangavaram. The remaining stretches in Gujarat connect to the Kandla, Mundra and Porbandar ports, and to large industrial districts such as Morbi and Rajkot, according to an India Ratings report.
Commercial vehicles account for more than 80% of toll-paying traffic, ensuring steady and predictable cash flows, the report added.
TOT-1 comprises nine Special Purpose Vehicles – Siddhantham Tollway; Diwantham Tollway; Diwancheruvu Tollway; Ankapalli Tollway; Icchapuram Tollway; Puintola Tollway; Bamanbore Tollway; Garamore Tollway; and Porbandar Jetpur Tollway.
Source: Economic Times