KNR Constructions up 11% as it sells entire stake in KNR Walayar Tollways

Shares of KNR Constructions soared 11 per cent to Rs 282 on the BSE in the early morning trade on Friday after the company announced it will sell its entire equity stake in a toll road BOT asset of special purpose vehicle (SPV) viz KNR Walayar Tollways Private Limited (KWTPL) to Singapore-based Cube Highways. The construction & engineering company holds 100 per cent equity in the SPV.

“The company has entered into share purchase agreement on January 9, 2020 with Cube Highways and Infrastructure III Pte (Cube Highways) to sell its entire equity stake in a toll road BOT asset viz KWTPL ("SPV"),” KNR Constructions said in its press release. 

The enterprise value of the assets for this transaction is Rs 529.27 crore excluding claims receivable from National Highway Authority of India (NHAI) and other governmental instrumentalities, which would be passed through to the Company as and when realized, it added.

Cube Highways is a Singapore-based company investing in road and highway projects, along with other select infrastructure sectors in India.

The completion of the transaction is contingent upon fulfillment of certain customary regulatory and lender approvals and parties anticipate closing of the transaction within next 2- 3 months.

KWTPL operates a four-lane 53.5-kilometer toll road connecting Walayar with Vadakkancherry on National Highway (NH) 47. The project is a 20-year concession granted in 2013 for strengthening and widening the highway from its original two lanes. Tolling commenced in October 2015.

At 09:47 am, KNR Constructions was trading 8 per cent higher at Rs 274 on the BSE. In comparison, the S&P BSE Sensex was up 0.13 per cent at 41,507 points. The trading volumes on the counter nearly doubled with a combined 610,084 equity shares changing hands on the NSE and BSE so far.

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