Piramal Group is to sign non-binding preliminary term sheets for six road projects
The Ajay Piramal group is close to finalising transactions to purchase controlling stakes in six road assets spread across the country. This move is expected to inject life blood into the stressed road sector and boost infrastructure development in a big way.
The real estate to financial services group has signed non-binding preliminary term sheets to acquire four projects and is in advanced negotiations to do it for two more. The total valuation for these proposed transactions will be close to Rs 2,000 crore. Parvez Umrigar the co-head of structured investment group, Piramal Enterprises mentioned that the company is looking to buy more than 51 % to take management control which will be spread across 6 years.
A term sheet is a non-binding agreement laying out the basic conditions under which an investment will be made. The final binding agreement is signed when both parties reach an agreement set forth in the term sheet.
Umrigar stated that out of the six targeted assets, three are in the south and the rest are in other parts of the country. The company has already started the due diligence for signing agreement.
The group’s flagship Piramal Enterprises decided to acquire and manage road assets six months ago after providing mezzanine financing to road projects and renewable energy ventures. The group now wants to appoint a separate management team headed by a chief operating officer and spearhead these 6 projects.
Source- The Economic Times
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