Transport infrastructure developer Cintra, a subsidiary of Spanish infra group Ferrovial, will acquire a 24% stake in IRB Infra Trust from GIC affiliates, IRB Infra said in a statement on Thursday.
Cintra has entered into a definitive agreement for this acquisition which also includes a 24% stake in MMK Toll Road Pvt Ltd, the investment manager of the Trust.
The completion of the acquisition is subject to fulfillment of conditions precedent, including requisite regulatory and third-party approvals.
“IRB, with a diverse variety of investors, is uniquely positioned to expand its asset base, already one of the key players in the sector, and drive sustainable growth and development across the nation,” the statement added. “The company will also benefit from the growing EPC (engineering, procurement and construction) and O&M (operation & maintenance) order book as the sole project manager to the Trust.”
“We are better poised to capture the growth opportunities emerging. We remain committed to creating and unlocking shareholder value,” said Virendra Mhaiskar, chairman and managing director of IRB Infrastructure Developers Ltd.
IRB Infrastructure Trust is an infrastructure investment trust registered with the Securities and Exchange Board of India. IRB Infra owns 51% of units in the Trust, while the balance 49% is held by affiliates of GIC. The Trust holds a portfolio of 15 road projects spanning across 10,567 lane-kilometre.
“We’ll keep leveraging our complementary strengths and expertise to capture further value from the growth that IRB is having, while we keep collaborating with each of GIC and IRB, respectively, in making the most of the pipeline ahead,” said Cintra CEO Andres Sacristan.