Infrastructure major GMR is selling a 74% stake in GMR Jadcherla Expressways, a key road project, to SBI Infrastructure Investments and SBI Macquarie Infrastructure Trust for an overall consideration of `206 crore, as part of its asset-right and asset-light strategy.
GMR Highways Ltd, the holding company of the road SPVs of GMR, has signed a definitive agreement with the investors for selling the stake.
The road SPV has been operating the Farukhnagar-Jadcherla highway in Andhra Pradesh, under a concession agreement with the National Highways Authority of India since February 2009. GMR would receive consideration of about `195 crore immediately and about `11 crore on completion of certain conditions.
Its original investment for the corresponding 74% stake was about `146 crore.
Macquarie SBI, which is one of the largest India focused infrastructure funds, has expanded its roads portfolio with this investment and has a well-diversified portfolio with assets in the telecom towers, airports, power, roads and renewable energy. Kotak Investment Banking was the exclusive financial advisor to GMR Highways on the transaction.
Subba Rao Amarthaluru, group CFO of GMR Group, said, “Globally large infrastructure groups follow the strategy of churning the mature infra assets to optimise the value realisation process and to meet their growth capital requirements. After a phase of rapid growth in diversified infra asset portfolio, we are now consolidating our assets as projects get operationalised.”
Monetisation of assets by picking the right partners to divest is completely in sync with the group’s strategy, he said. The group will continue to focus on this approach in other businesses as well. This partnership will also strengthen the relationship with Macquarie SBI, he said. This is the second investment by Macquarie SBI in the GMR Group after GMR Airports a few years ago.