Patel Engineering and KNR Constructions have entered an agreement to sell their entire equity stake in two road build, operate and transfer (BOT) to an Essel group company for an enterprise value of Rs 850 crore.

Both the assets are operational annuity based BOT assets awarded by the National Highways Authority of India (NHAI). The transaction is subject to certain conditions precedent including lenders and NHAI approvals, customary to transactions of this nature and parties anticipate closing of the transaction within next 2-3 months, the companies said in a statement.

Rupen Patel, Managing Director of Patel Engineering said that the sale of these assets is part of the monetisation plan to improve financial liquidity for ongoing operations. The company further intends to identify such quality assets and seek optimum value which would strengthen overall cash flow position and would help in strengthening the balance sheet.

Equirus Capital was the transaction advisors, while Cyril Amarchand Mangaldas (Delhi) were the legal advisors to the sellers on this transaction. Luthra and Luthra law offices advised the buyers.

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