I Squared Capital backed highways platform Cube Highways has closed the acquisition of Baharampore Farakka Highways Ltd (BFHL), which owns a 101 km highway stretch in West Bengal, from the HCC group at an enterprise value of Rs1,323 crore.
BFHL is a subsidiary of HCC Concessions which operates a toll road project between Baharampore and Farakka section of NH 12 in West Bengal, connecting Kolkata and Haldia port to North Bengal and North Eastern states.
Apart from the equity consideration of Rs677 crore, HCC is entitled to an additional payout of up to Rs264 crorecontingent on traffic performance, which is payable in two tranches by Q3 FY24 and Q1 FY25.
Edelweiss acted as the exclusive financial advisor to HCC group.
Cube Highways, sponsored by I Squared Capital and backed by other investors such as IFC, ADIA, Mitsubishi Corp among others, is one of the biggest investors in the India road sector having acquired 27 road assets since its inception, totalling to 8,400 lane kilometres.
ET reported on 1 April that Cube Highways has raised as much as Rs4,500 crore from various investors for its maiden infrastructure investment trust (InvIT). The InvIT comprised 19 operating road assets owned by Cube.