Larsen & Toubro and pension fund manager Canada Pension Plan Investment Board have agreed to transfer 100% shareholding in L&T Infrastructure Development Projects, and its subsidiaries, to Edelweiss Alternative Asset Advisors’s Infrastructure Yield Plus Strategy fund for an enterprise value of ₹6,000 crore.
L&T Infrastructure Development is a joint venture with L&T and CPPIB having a 51% and 49% stake, respectively. L&T, CPPIB will get gross proceeds of ₹2,723 crore from the stake sale, according to the exchange filing. CPPIB had invested in L&T Infrastructure Development in 2014 and continues to be an active investor in India’s infrastructure sector, including in IndInfravit. L&T Infrastructure’s portfolio comprises eight roads and a power transmission asset spanning 4,900 lane-km and 960 circuit kilometre, respectively. With this acquisition, Edelweiss will have a diversified portfolio of 26 infrastructure assets comprising 5,100 lane-kms of roads, 1,800 kms of power transmission assets and about 813 Mega-Watt peak of renewables, Edelweiss said in an exchange filing.
“These assets have a proven track record of operations, are geographically dispersed and have long residual life, which is consistent with our investment strategy. We believe our asset management and operating capabilities, together with that of L&T, will help scale up this platform,” said Sreekumar Chatra, managing director, Infrastructure Yield Strategy.