M&A

M&A

Undone: Adani Group scraps Rs.3,110-Cr deal to buy 2 Macquarie road projects

BSE Announcement,   Business Standard  

Publicly listed Adani Enterprises has scrapped a deal to acquire two road projects from Macquarie Asia Infrastructure Fund (MAIF). Adani Enterprises, in its filing with the stock exchanges has cited “non-satisfaction of conditions to closing by the Seller within the agreed timeline” as the reason. In August 2022, Adani Enterprises (via its 100% subsidiary Adani Road Transport Limited) had announced a plan to acquire 100% stake in Swarna Tollway Pvt Ltd (STPL) and 56.8 % stake in Gujarat Road and Infrastructure Company Ltd (GRICL) for INR 3,110 crore. STPL operates two stretches of toll roads in Andhra Pradesh from Tada to Nellore 110-km stretch on National Highway-16 connecting Chennai, and Krishnapatnam and Nandigama to Ibrahimpatnam and Vijayawada on NH-65 spanning 48 km, connecting key southern metro cities and providing feeder traffic to NH-16. GRICL's two stretches of toll roads connected Ahmedabad to Mehsana on State Highway-41 spanning 51.6 kms with majority passenger traffic connecting northern Gujarat corridors and Vadodara to Halol on SH-87 spanning 31.7 km, which is on the Delhi-Mumbai Industrial Corridor. Adani Group was also planning to buy the stake of IL&FS in GRICL. But the group changed its focus to prepay debt and completing existing projects instead of taking additional debt in its books.