Private Equity

PE Fund Investments

Cube Highways to acquire Baharampore-Farakka Highways from HCC for Rs.800-Cr

BSE Disclosure  

HCC Concessions Ltd (HCON) has signed binding terms with Cube Highways (A JV fund of IFC and I Squared Capital) for 100% sale of Baharampore-Farakka Highways Limited (BFHL) at an enterprise value of INR.1,279 crore and an equity valuation of INR 600 crore. In addition to the equity value, INR 200 crore of earnout is payable in May 2024 contingent on achieving revenue thresholds. Furthermore, HCON will be entitled to a material revenue share for the life of the concession. The financial advisor for this transaction is Edelweiss Financial Services Ltd. BFHL is a 101 km highway which forms part of the main arterial National Highway 12 (earlier National Highway 34) in West Bengal connecting Kolkata and port of Haldia to North Bengal and North Eastern states. Out of 101 km, BFHL is currently tolling 90 km and the balance 11 km of Baharampore Bypass will be tollable post completion in Q4 FY23 which will increase the normal toll revenue by -45%.