InvestorQ : Can you tell me about the Adani deal to buy the road assets from Macquarie?
Arti Chavan made post

Can you tell me about the Adani deal to buy the road assets from Macquarie?

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Rutuja Nigam answered.
4 days ago
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For a long time, the company Adani Enterprises has been the holding company *** incubating company for new ideas. Most of the major new ideas like green energy, infrastructure projects, airports etc were either incubated at Adani Enterprises or by a subsidiary of the company. In the latest announcement, Adani Enterprises has said that its group company, ARTL, will acquire two toll roads from Macquarie Asia Infrastructure Fund. These road projects are based in the states of Andhra Pradesh and Gujarat respectively.

The total value of the acquidition by ATRL from Macquarie Asia Infrastructure Fund will be worth Rs3,110 crore. It will surely go down as one of the largest such buyout deals in the infrastructure space, especially the toll roads business. The total consideration of Rs3,310 crore will be paid across the projects that ATRL will take over from Macquarie Asia Infrastructure Fund in the states of Andhra Pradesh and Gujarat. The deal will ensure monetization of assets for Macquaries and a new revenue stream for the Adani group.

In terms of deal structure, ATRL, the subsidiary of Adani Enterprises, will buy 56.8% stake in Gujarat Road and Infrastructure Company (GRICL) and also buy its 100% stake in Swarna Toll way in the state of Andhra Pradesh. The transaction is expected to be closed by September 2022, which is the coming month. While Swarna has 2 stretches of toll roads in the state of Andhra Pradesh, the Gujarat Road and Infrastructure Company (GRICL) has two stretches of toll roads in the state of Gujarat. It is expected to be revenue accretive from first year.

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