28 June 2019: Reliance Infrastructure (RInfra) on Thursday announced that it will close the sale of the Delhi-Agra toll road to Singapore-based roads and highway investment company Cube Highways and Infrastructure by the end of August.
The Anil Ambani-led company will receive an enterprise value of Rs 3,600 crore, including equity of up to Rs 1,700 crore from the sale, it said in a release.
The Delhi-Agra toll road is the 180-km six-lane toll road connecting Delhi and Agra on National Highway 2.
“Reliance Infrastructure will utilise 100% of proceeds only for debt reduction. With this single transaction of DA toll road, the debt of Reliance Infrastructure will reduce by over 25% to less than Rs 5,000 crore,” the release said.
The company had in March announced a binding share purchase agreement with Cube Highways for its 100% stake in the Delhi-Agra toll road.
Reliance Infrastructure has already applied for commercial operations date (COD) to the National Highways Authority of India (NHAI) for the project, the release said. The collection period of the toll road is until 2038.
“This sale will significantly reduce the debt of Reliance Infrastructure on its path to becoming a zero-debt company,” said Punit Garg, executive director and CEO, Reliance Infrastructure.
Recently, auditors of the company raised doubts about the ability of Reliance Infrastructure and its subsidiaries to continue as a going concern.
Cube Highways and Infrastructure is a company formed by Global Infrastructure Fund — I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority.