NIIF may buy equity in Ashoka Buildcon HAM road asset for $100 mn
India’s sovereign wealth fund, National Investment and Infrastructure Fund (NIIF), is likely to acquire the hybrid annuity model (HAM) road assets of Ashoka Buildcon’s subsidiary Ashoka Concessions Ltd (ACL) for an equity value of around $100 million.
Bidders for ACL’s HAM assets included NIIF, Actis Llp and Canada's Brookfield Asset Management Inc, who proposed equity bids of around $350 million and an enterprise value of $1.2 billion, and Cube Highways had also shown interest in the sale.
As a part of the sales purchase agreement, NIIF is expected to acquire ACL’s HAM assets. ACL’s portfolio of road assets comprise 15 projects, including one operational annuity project under the build, operate, and transfer (BOT) model, six operational BOT toll projects, and eight under-construction HAM projects.
NIIF and Public Sector Pension Investment Board plan to invest $2 billion in equity to acquire road assets in India.
Ashoka Buildcon Ltd has a 61% stake in ACL, while the remaining 39% is held by Macquarie Infrastructure and Real Assets (MIRA), one of the biggest foreign infrastructure investors in India. In 2012, Macquarie, through its first India-focused fund, had bought the stake for Rs 800 crore. It had finalised the deal jointly with the State Bank of India (SBI).