Ashoka Buildcon enters share purchase agreement, to sell road assets

The company will also acquire the remaining 34 per cent stake in its unit ACL at an aggregate consideration of Rs 1,526 crore, to make it a wholly owned subsidiary

Ashoka Buildcon Limited has entered into share purchase agreements and other transaction documents with the Indian Highway Concessions Trust to sell its five road assets for Rs 2,539 crore, according to a stock exchange filing by the company.

 

The company will sell its entire share capital in subsidiaries, namely Ashoka Highways (Bhandara) Limited, Ashoka Highways (Durg) Limited, Ashoka Belgaum Dharwad Tollway Limited, Ashoka Sambalpur Baragarh Tollway Limited, and Ashoka Dhankuni Kharagpur Tollway Limited.

 

The transaction is expected to be completed by March 31, 2025, but is “subject to adjustments for cash and debt-like items and other adjustments as agreed under the respective transaction documents.”

 

 

Separately, the company will acquire 100 per cent of the investments of investors in its unit, Ashoka Concessions Limited (ACL), for an aggregate consideration of Rs 1,526 crore. It has entered into a securities purchase agreement with the investors, Macquarie SBI Infrastructure Investments Private Limited and SBI Macquarie Infrastructure Trust, to acquire the remaining 34 per cent of equity shares in ACL.

 

The company already holds 66 per cent of equity shares in ACL. Upon completion of this all-cash transaction, ACL will become a wholly owned subsidiary of the company.

 

Additionally, Viva Highways Limited, a subsidiary of the company, will acquire a 26 per cent stake from investors, namely SBI Infrastructure Investments Private Limited and SBI Macquarie Infrastructure Trust, in its affiliate, Jaora Nayagaon Toll Road Company Private Limited, for Rs 150 crore.

 

All the above transactions are subject to the fulfilment of certain conditions precedent, including approval from the lenders of the respective subsidiaries, the National Highways Authority of India (NHAI), and the Competition Commission of India (CCI).