PNC sells 12 road assets to HIT
HIT is an Infrastructure Investment Trust (InvIT) affiliated with funds managed by KKR & Co. Inc, PNC Infratech said in a press release. The strategic move to divest the road assets cover approximately 3,800 lane kms across Uttar Pradesh, Madhya Pradesh, Karnataka, and Rajasthan.
The enterprise value of the major transaction is inclusive of earn-outs, which translates to an equity value of Rs 2,902 crore (including cash) on an invested equity of Rs 1,740 crore, PNC added.
Out of the 12 projects, 10 projects are currently operational and remaining two projects are under-construction, which will be acquired post commencement of operations.
The transaction is subject to certain regulatory and customary conditions, including approval from relevant regulatory authorities, lenders, and other corporate authorizations.
The infrastructure developer affirmed that the transaction is in line with PNC Infratech's strategic goal of capital recycling. Through the divestment of operational road assets, the company aims to harness the ambitious growth vision set forth by the Government of India for the sector, as further emphasized in its statement.