(PTI) Edelweiss Alternatives on Saturday entered into an agreement with Larsen & Toubro and Canadian Pension Plan Investment Board to pick up their stakes in L&T Infrastructure Development Projects Ltd (L&T IDPL) at an enterprise value of ₹6,000 crore.
Edelweiss Alternatives -- an alternative investment fund management platform -- in a statement said that the transaction is being executed by a fund managed by Edelweiss Alternatives and it also involves absorbing the operating team.
Larsen & Toubro holds 51 per cent stake, while Canada Pension Plan Investment Board owns 49 per cent in L&T IDPL.
"L&T has entered into a share purchase agreement to transfer its entire shareholding in L&T Infrastructure Development Projects Limited along with its subsidiaries," the engineering and construction conglomerate said in a BSE filing.
"Gross proceeds to L&T and CPP Investments from the sale would be approximately ₹27,234 million, before closing adjustments and other terms of the transaction," the filing said, adding that a special purpose vehicle, Epic Concesiones Pvt Ltd, has been created for the said transaction.
The portfolio of the target company comprises eight roads and one power transmission asset, spanning 4,900 lane kilometres and 960 circuit kilometres, respectively.
Following this acquisition, the infrastructure platform will scale up to 26 assets with cumulative annual revenue of nearly ₹2,700 crore. The platform will be a diverse mix of power transmission and substations, renewables and highway assets.
Sreekumar Chatra, managing director of the infrastructure yield strategy fund, said these assets have a proven track record of operations, are geographically dispersed and have long residual life, which is "consistent with our investment strategy".
Subahoo Chordia, head of infra funds at Edelweiss Alternatives, said on completion of this acquisition, "there will be a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making us a leading infrastructure investor in the country".
Edelweiss Alternatives' infra fund, which the company calls yield plus strategy, has ₹9,500 crore of infrastructure assets under its domain. It focusses on investing in power transmission, renewable power and highways, among others. It is amongst the largest such funds in the country and with capital commitments from both domestic and global investors.
Edelweiss Alternatives pioneered private debt in the country with the launch of the USD 230 million fund in 2010 and has since then grown to be one of the largest alternative fund management platforms with an asset under management of USD 5.5 billion now.