Actis acquires six road projects from Welspun for $775-M

UK-headquartered Actis, via Actis' Long Life Infrastructure Fund (ALLIF), is to purchase a portfolio of six operating highway toll road projects in India from Welspun Enterprises Ltd (WEL), part of the Welspun Group, for an aggregate enterprise value of USD 775 million. Ernst and Young LLP acted as exclusive advisor for Welspun Enterprises. The portfolio benefits from a stable mix of annuity and toll cash flows, with the projects located strategically across India including in the prominent North-South highway corridor. Five of the six toll roads have a Hybrid Annuity concession, whereby the concessionaire gets a fixed pay-out to ensure road availability. The concessions for the five projects are awarded by National Highways Authority of India and have received a AAA local credit rating. The Highway Portfolio comprises of 5 completed HAM assets (Welspun Delhi Meerut Expressway Pvt Ltd, Welspun Road Infra Pvt Ltd, MBL (CGRG) Road Ltd, MBL (GSY) Road Ltd, Chikhali Tarsod Highways Pvt Ltd) and one operating BOT-Toll asset (Welspun Infrafacility Pvt Ltd).