Abertis closes the acquisition of two toll roads in India

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Abertis closes the acquisition of two toll roads in India

Abertis has closed the acquisition from MSIIPL and SMIT infrastructure funds, controlled by Macquarie and State Bank of India, of two of India's most important toll roads, the NH-44 and the NH-45, for a total amount of €128 million (US$134 million).

Abertis controls now 100% of the concessionaire Trichy Tollway Private Limited (TTPL), which manages the NH-45, and 74% of Jadcherla Expressways Private Limited (JEPL), which holds the concession for the NH-44. The assets are located in Tamil Nadu and Telangana, both states with economic growth rates above the national average for India and with GDP levels that are amongst the highest in the country.

The 94-kilometre-long NH-45 is a key corridor for the country and connects the industrial areas of Trichy and Madurai with the state capital, Chennai. It has Average Daily Traffic (ADT 2016 estimated) of 17,000 vehicle approximately.

The 58 kilometre-long NH-44, in Telangana, is part of the main north-south traffic corridor and connects the country's two main technology hubs, Hyderabad and Bangalore. It has ADT (2016 estimated) of 21,000 vehicles approximately, NH-44 runs through a highly industrialized and commercial area where India’s mining sector has a large footprint.

The transaction marks the entry of the Abertis Group into the Indian market and represents an opportunity to create platform for growth based on potential future transactions in the region.

Francisco Reynés, Vice-Chairman and CEO of Abertis, expressed his satisfaction, stating:

"This deal is an important step for Abertis in the geographic diversification of its business, moving into a growing market and one of the countries with the strongest growth potential in the world. This transaction bolsters the Group's international leadership status and balances its exposure to markets all around the world."

“The transaction fulfils the Group's requirements for generating shareholder value, satisfies its profitability criteria, and does not compromise either dividend policy or the company's rating”.

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