Goldman to pick up 5% stake in ITNL for Rs 90 cr soon
By Gaurie Mishra, TNN |
Highlights
NEW DELHI: Goldman Sachs is close to picking a 5% equity stake in IL&FS Transportation Networks (ITNL) for around Rs 90 crore. ITNL is a vehicle promoted by IL&FS to spearhead its initiative in transportation infrastructure development.
If this transaction goes through, it will be the second private placement in ITNL in the last three months. In October 2006, US-based private equity fund Trikona Capital bought 2.5% stake in the company for nearly Rs 40 crore. Recently, Trikona also announced a $100-million partnership with parent company IL&FS for investments in real estate and infrastructure.
When contacted by ET, a Goldman Sachs spokesperson declined to comment. Sources close to the development say the deal is expected to be struck in the next two weeks. IL&FS chief executive Ravi Parthasarathy did not comment on the transaction.
ITNL is the promoter of the Noida toll road project and owns 22.6% equity in Noida Toll Bridge Company. Noida Toll Bridge is listed on the AIM market in London Stock Exchange.
ITNL currently has a portfolio of 10-11 road sub-sector projects, which are in the development phase and a pipeline of such projects in the planning phase. The company, which has got road projects in Ahmedabad, Rajasthan, has recently won an annuity contract in Chhattisgarh. Incorporated in 2000, IL&FS has domiciled most of its transport sector investments and resources in ITNL for its surface transportation projects.
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Last week, Goldman Sachs bought a 5% stake in the National Stock Exchange. Incidentally, IL&FS was one of the deal makers in the transaction. As part of its business strategy, ITNL intends to agglomerate assets ��� both IL&FS and non-IL&FS sponsored ��� through acquisitions. The company also intends to participate in green field projects and provide advisory services. As a first step, the holdings of IL&FS and existing financial investors in the IL&FS sponsored projects are being transferred to ITNL.
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