Cintra gets approval from CCI to acquire 24% stake in IRB Infra Trust
In another press release, CCI has approved the proposed acquisition of Meerut Budaun Expressway Ltd (MBEL) by IRB Infrastructure Trust.
The Competition Commission of India (CCI) on Tuesday said it has approved Cintra’s proposed acquisition of 24 percent stake in IRB Infrastructure Trust and MMK Toll Road Pvt Ltd.
Cintra InvIT Investments BV (Cintra SPV 1) and Cintra IM Investments BV (Cintra SPV 2) jointly belong to the Netherlands-based Ferrovial group.
“The proposed combination includes the acquisition of approximately 24 percent of the issued and outstanding equity (on a fully diluted basis) together with certain commercially negotiated rights in the Private InvIT (IRB Infra Trust) by Cintra SPV 1.
“Simultaneous acquisition of approximately 24 percent equity stake along with the right to appoint a director to the board of directors of the IM of the Private InvIT by Cintra SPV 2,” CCI said in a press release.
Ferrovial group is a global developer of transport infrastructure, mobility solutions, engineering and is engaged in the construction of civil works and buildings.
The sponsors of IRB Infrastructure Trust are IRB Infrastructure Developers Ltd (IRB ListCo) and the Singapore government’s sovereign wealth fund GIC.
MMK Toll Road (IM) is the investment manager of the Sebi-registered IRB Infrastructure Trust.
In another press release, CCI has approved the proposed acquisition of Meerut Budaun Expressway Ltd (MBEL) by IRB Infrastructure Trust.
MBEL is a special purpose vehicle deployed for the development of the Ganga Expressway, while IRB Infrastructure Developers were engaged in construction work in the areas of engineering, procurement and construction contracts.
The proposed subscription of Non-Convertible Debentures (NCDs) of MBEL by IRB and Anahera respectively. If for any reason the parties are unable to complete the subscription, the InvIT proposes to subscribe to such NCDs from MBEL.
Further, the regulator also approved the proposed fresh issuance of units by the InvIT to its existing units (each of the IRB and one or more of the GIC units in the InvIT).
“The proposed acquisition of shares of MBEL and NCDs of MBEL by the InvIT,” CCI said.
Anahera Investment Pte is a subsidiary of GIC.
The deals above a certain threshold require approval from the regulator, which monitors unfair business practices and promotes fair competition in the market.
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First print: June 4, 2024 | 11:17 PM IST