Funds in race to buy NCC’s highway assets
NCC is looking to reduce its debt and is negotiating with potential buyers to sell two highway assets. Squared Capital, IDFC and Acropolis Capital are in the race for the two assets. The assets are Meerut-Muzaffarnagar highway and the Bengaluru-elevated expressway. NCC is expecting to obtain a combined enterprise value of aroundRs 2,000 crore from the deal proceeds.
Blackstone has around 12% stake in NCC and is keen that NCC monetise its assets and reduce debt. The Meerut-Muzaffarnagar project is said to be cash positive and attracts steady traffic. The second project is at the entry point of Electronic City near the outskirts of Bengaluru and is quite significant.
Rajeshree Sabnavis, partner at BMR Advisors, expects that the roadblocks in infrastructure sector are likely to be cleared after polls.
NCC’s total debt burden stood at around Rs 4,170 crore as of September 2013. The Meerut-Muzaffarnagar section consists of 79 kms on NH 58 in Uttar Pradesh while highway project is on the Bengaluru-Hosur section of NH 7 in Bengaluru, from Silk Board junction to Electronic City.
Source: The Economic Times
Bengaluru-elevated expressway, Highway, IDFC, Meerut-Muzaffarnagar highway, ncc, nh-7, Squared Capital
