After a year of negotiations, Canadian pension fund CDPQ is set to acquire five build-operate-transfer (BOT) toll road assets from Ashoka Concessions, a subsidiary of Ashoka Buildcon, for an enterprise value of Rs 45 billion, according to sources familiar with the deal. The transaction is expected to be finalized this week, with the assets being acquired through CDPQ’s infrastructure trust, the Indian Highway Concession Trust (IHCT). Ashoka Buildcon currently owns a 66% stake in Ashoka Concessions, with the remaining interest held by SBI Macquarie, which had invested Rs 8 billion in the company through the Macquarie-SBI Infrastructure Fund (MSIF) in 2012. CDPQ and UK-based Actis were reportedly the final contenders for these assets, following the collapse of an earlier agreement with global investment firm KKR. KKR had initially agreed to buy the BOT assets for Rs 13.37 billion but backed out in May 2023, prompting Ashoka Concessions to open talks with multiple funds, including Actis, Sekura, and NIIF. Maple Highways, CDPQ’s platform for the Indian road sector, sponsors IHCT, which already manages the Eastern Peripheral Expressway in the National Capital Region under ToT7, along with the Shree Jagannath Expressways in Odisha. The five toll road projects under Ashoka Concessions are fully operational, with an average tolling history of 10 years and stable traffic flows. In FY24, these assets generated a 12% increase in toll collections, amounting to Rs 12.47 billion. Collections are expected to surpass Rs 13 billion this fiscal, supported by modest toll rate adjustments and moderate traffic growth, as per a recent ICRA report. Spokespersons for CDPQ and Macquarie declined to comment on the deal, while Ashoka Buildcon did not respond to media queries. Currently, 25% of IHCT is owned by a group of private investors, including the Suresh Kotak family, IIFL Group, and the Taparia family, founders of Famy Care. CDPQ holds the remaining stake in the trust. ICRA’s latest report notes that while the Engineering, Procurement, and Construction (EPC) model remains the preferred method for awarding road projects, there is a gradual shift towards BOT (toll) projects, reflecting the evolving strategy of the Ministry of Road Transport and Highways. (ET)