The HCC Group announced on Wednesday that it had reached an agreement with Cube Highways to sell Baharampore-Farakka Highways Ltd (BFHL) for Rs 1,279 crore. It is a 101 km road in West Bengal that connects Kolkata and the port of Haldia to the state's northern region and North-East India as part of National Highway-12. The road project is owned by HCC Concessions Ltd (HCON), a subsidiary of HCC Ltd, and the transaction with Cube Highways is structured in such a way that the group will receive up to Rs 900 crore in total liquidity.HCC Concessions Ltd immediate parent is HCC Infra. HCC said that HCC Group has reached an agreement with Cube Highways and Infrastructure V Pte Ltd for a 100% sale of BFHL for Rs 1,279 crore, implying a Rs 600 crore equity valuation. In addition to the equity value, a Rs 200 crore earnout payment is due in May 2024 if revenue targets are met. For the duration of the concession, HCON will be entitled to a material revenue share. The company said it will securitize a portion of these future BFHL receivables with a loan of up to Rs 300 crore, providing the group with total liquidity of up to Rs 900 crore. BFHL has a 19-year balance concession period. Closing adjustments, customary due diligence, and approvals, including from the National Highways Authority of India (NHAI), are all contingent on the transaction. HCON formed Baharampore-Farakka Highways in 2010 as a special purpose vehicle to design, build, finance, operate, and transfer (DBFOT) tolls on the four-lane highway between Baharampore and Farakka on NH-12 (earlier NH-34). The company was granted a 25-year (extendable to 30-year) concession by NHAI, and BFHL began toll operations on May 14, 2014. HCC Concessions Ltd has developed and operated NHAI concessions worth over Rs 7000 crore. HCC Ltd, the holding company, had defaulted on its debt. It owes a total of Rs 9,727 crore in consolidated debt, which is currently being restructured. Image Source Also read: HCC closes sale of Farakka Raiganj Highways