InvestorQ : What does the Adani Group taking over Sadbhav Infra mean?
Dilmini Mercia made post

What does the Adani Group taking over Sadbhav Infra mean?

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Dawn Cherian answered.
4 months ago
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Let me clarify that it is not Adani group taking over Sadbhav Infrastructure, but only a subsidiary of the company. In fact, Adani Road Transport, a subsidiary of Adani Enterprises, will acquire Maharashtra Border Check Post Network or MBCPNL, which is a subsidiary of Sadbhav Infrastructure. The total deal has been valued at Rs. 1,680 crore. Adani Roads will buy 49% in MBCPNL with option to buy the full 100% at a future date.

The deal would be subject to approval of the lenders who have lent to projects of Sadbhav against roll receivables. In addition, this would also require regulatory clearances before the deal can go through. MBCPNL has exclusive fee collection rights over 24 check posts on key traffic routes in the state of Maharashtra. Sadbhav has been in cash flow problems for some time and this is a premium asset, accounting for 20% of commercial road traffic in India.

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