The Madhucon Group has completed the sale of its majority stake (74 per cent) in Madhucon-Agra Jaipur Expressway Ltd to Cube Highways and Infrastructure Pte Ltd, formerly known as ISQ Asia Infrastructure I-A Pte Ltd.

This is the first major strategic sale in Madhucon’s highway portfolio. Cube Highways emerged as the successful bidder in buying the majority stake in the project which attracted interest from several major investors in the country and abroad.

Madhucon and Cube Highways had signed a share purchase agreement on October 21, 2015 for Rs 248 crore. Upon receiving all necessary approvals, the transaction was concluded on March 30, 2016 with 74 per cent stake transfer. Divestment of stake has enabled Madhucon to pare down its debt by Rs 212 crore.

Commenting on the development, the Hyderabad-based infrastructure company stated, “The sale proceeds from the transaction will be used to complete the under construction infrastructure projects of the group. The completion of this transaction demonstrates the ability to successfully optimise the value realisation from operational infrastructure assets.”

“The focus of the group continues to be on its core competence in EPC and the upcoming NHAI hybrid model projects, as well as creating liquidity and on reducing the leverage for the benefit of all stakeholders.” It said.

The project is an operational BOT (build, operate and transfer) mode project of NHAI between Bhartpur and Mahua in Rajasthan connecting the two key tourist cities of Agra and Jaipur. The project had started commercial operation and toll collection in May 2009.

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