HCC lnfrastructure Company Limited (HCC) has announced that its wholly-owned subsidiary HCC Concessions Ltd has executed a definitive agreement in respect of 100% stake sale of Farakka-Raiganj Highways Ltd (FRHL), its concessionaire subsidiary, to Cube Highways and lnfrastructure II Pte. Ltd.
FRHL owns a 30-year concession for a 103km segment of National Highway 34 (NH-34) which connects Farakka and Raiganj in the state of West Bengal, north-east India. FRHL's concession includes the four-laning of the highway segment, which was completed in October 2016.
HCC will receive an equity consideration of INR3.72 billion for the 100% stake, subject to requisite approvals and certain closing adjustments. An additional consideration may be paid based on contingencies such as completion of the balance section of the project highway, resolution of certain disputes with the National Highways Authority of India and certain earnouts which, individually or in aggregate, may have a significant impact on the aforementioned consideration.
Edelweiss Financial Services Ltd is the financial advisor for this transaction.