KKR unit plans $1 billion acquisition of road assets from PNC

Highways Infrastructure Trust, a roads platform under KKR, is currently in discussions to purchase a portfolio of 12 road projects from Agra-based construction firm PNC Infratech for an estimated enterprise value of around Rs 90 billion (approximately $1.1 billion), according to sources familiar with the matter. If the deal is finalised, it would mark the largest acquisition of road projects in India by the US-headquartered private equity (PE) firm.The portfolio being offered for sale consists of 11 hybrid annuity model (HAM) roads and one build-operate-transfer (BOT) road, spread across Uttar Pradesh, Madhya Pradesh, and Rajasthan. Sources stated that KKR emerged as the preferred bidder among four contenders, and the PE firm has recently commenced due diligence on the assets. The portfolio carries an enterprise value of approximately Rs 90 billion, with a debt component of around Rs 69 billion.Out of the 12 road projects, seven are already operational, while the remaining projects are expected to become operational within the next three to four months. The sources emphasised that this portfolio represents one of the largest collections of road projects currently available for sale in the market.