Private equity giant KKR and Canadian pension fund Ontario Teachers’ Pension Plan (OTPP) are set to inject Rs 5,000-6,000 crore (approximately $700 million) into Highways Infrastructure Trust (HIT) to facilitate the acquisition of road assets worth Rs 15,000 crore ($1.76 billion), according to sources cited by Moneycontrol.
Key Details of the Deal
- Investors: KKR, the sponsor of HIT, and OTPP, its second-largest shareholder.
- Road Portfolios:
- Acquisition of 12 road projects from PNC Infratech for an enterprise value of Rs 9,000 crore.
- TOT bundle-16 from the National Highways Authority of India (NHAI), valued at Rs 6,661 crore.
- Geographic Spread: The acquired assets represent around 3,800 lane kilometres across Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka, including:
- 11 HAM roads from NHAI.
- 1 toll road from the Uttar Pradesh State Highways Authority.
- The 251-km TOT bundle on the Hyderabad-Nagpur NH-44 corridor in Telangana.
Impact of the Acquisition
The acquisition will position Highways Infrastructure Trust as one of the largest owners of operating road assets in India. With regulatory approvals from NHAI anticipated soon, these deals mark significant milestones for the country’s road infrastructure sector.
Timeline for the Infusion
The $700-million capital infusion by KKR and OTPP is expected to conclude in the first quarter of 2025.
The KKR-PNC Infratech agreement, announced earlier in January, is one of the largest transactions in India’s road sector and the biggest deal of the year so far.
