Essel Group acquires two road assets from KNR, Patel for Rs 850 crore

MUMBAI: Dr. Subhash Chandra-controlled Essel Infra Projects has agreed to acquire two road projects from a joint venture between Hyderabad-based KNR Constructions and Patel Engineering for an enterprise value of Rs 850 crore.

Both the assets are operational annuity based Build-Operate-Transfer (BOT) assets awarded by Ntional Highways Authority of India. The transaction is subject to certain conditions precedent including lenders and NHAI approvals and is expected to close within next 2-3 months, both the companies said in a statement.

Earlier in August, Essel Highways has secured $85 million loan from investment bank Goldman Sachs as part of a $220-million debenture issuance to finance new projects and for strategic acquisitions.

Essel Highways has 14 roads with 10 operational assets providing significant cash inflows. The company has an order book of close to Rs 11,000 crore, its website showed.

Mumbai-based Equirus Capital acted as the exclusive transaction advisors to KNR Constructions and Patel Engineering.

Cyril Amarchand Mangaldas were the legal advisors to the sellers whereas Luthra and Luthra advised the buyers on this transaction.