Road developer Cube Highways, owned by global private equity fund I Squared Capital and Middle East sovereign fund Abu Dhabi investment Authority (ADIA), has joined the race to buy some of the operating toll road projects owned by the debt-ridden Infrastructure Leasing and Financial Services (IL&FS), three people with knowledge of the plan said. The discussions, in an initial stage, value toll road assets of IL&FS at $1.2 billion, people quoted above said. Cube has appointed global consultant KPMG as advisor.
The deal, if it goes through, will give the beleaguered IL&FS much needed liquidity to retire part of its huge debt pile of Rs 91,000 crore. IL&FS has 28 buildoperate-transfer (BOT) projects under the listed IL&FS Transportation Networks (ITNL). Europe’s leading road operator Atlantia of Italy is also in talks to purchase the same portfolio of roads, ET had reported on September 27.
The newly-appointed board of IL&FS is considering many ways to generate immediate cash flows and is also exploring options to sell the rights to operate toll roads built by it, besides selling other assets in the energy sector. Read more
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