HCC Wraps up Sale of Baharampore-Farakka Highways
Hindustan Construction Company (HCC) has successfully sold Baharampore-Farakka Highways Ltd to Cube Highways and Infrastructure V Pte Ltd for Rs 1,323 crore. According to a statement released by HCC, the company will receive a total of Rs 941 crore, which includes an upfront amount of Rs 677 crore and Rs 264 crore payable by the third quarter of 2023-24 in two tranches, dependent on traffic projections.
Under the agreement with Cube, HCC will be entitled to a revenue share from Baharampore-Farakka Highways Ltd (BFHL) over the entire concession period. This is considered material in nature and will provide an additional source of income for HCC.
Arjun Dhawan, the Vice Chairman of HCC, stated that the company’s concessions portfolio has been a significant value generator, and this sale will contribute to the company’s liquidity and growth.
The legal and financial advisors for this transaction were Cyril Amarchand Mangaldas and Edelweiss Financial Services Ltd, respectively.
HCC Concessions Ltd established BFHL as a special purpose vehicle on March 11, 2010. The purpose of its creation was to undertake the design, construction, financing, operation, and transfer of tolls for the four-lane highway connecting Baharampore and Farakka section of NH-12 in West Bengal, as part of the National Highway Development Project (NHDP) Phase III.
BFHL received a concession period of 25 years, which can be extended to 30 years, from the state-owned NHAI. The company began commercial toll operations on May 14, 2014.
Cube, a Singapore-based company, invests in road and highway projects, as well as other select infrastructure sectors in India.
Headquartered in Mumbai, Hindustan Construction Company Ltd (HCC) is one of India’s leading companies in engineering, procurement, construction, and project management. The company was founded in 1926 by industrialist Seth Walchand Hirachand.
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