Edelweiss Alternatives backed platform signs agreement to acquire L&T Infrastructure Development Projects

Mumbai : Infrastructure Yield Plus strategy, managed by Edelweiss Alternatives, has signed definitive agreements with Larsen & Toubro Limited (“L&T”) and Canada Pension Plan Investment Board (“CPP Investments”) to acquire 100% equity stake in L&T Infrastructure Development Projects Limited (L&T IDPL). The proposed acquisition will be for an enterprise value of approximately INR 6,000 cr, along with its operating team that has a proven track record in operational excellence. The portfolio comprises eight roads and one power transmission asset in India, spanning ~4,900 lane-kms and ~960 ckms respectively. The transaction is subject to customary closing conditions including applicable regulatory and other approvals. Following this acquisition, the infrastructure platform will scale up to 26 assets with cumulative annual revenue of nearly INR 2,700 cr. The platform will be a diverse mix of power transmission & substations, renewables and highway assets spread geographically. This acquisition is in line with the infrastructure yield strategy to generate regular distributions for investors by acquiring quality operating infrastructure assets with strong cash flows and unlocking value through active asset management. Sreekumar Chatra, Managing Director, Infrastructure Yield Strategy said, “We look forward to acquiring these high-quality assets built by L&T, a renowned engineering and construction major. These assets have a proven track record of operations, are geographically dispersed and have long residual life, which is consistent with our investment strategy. We believe our asset management and operating capabilities, together with that of L&T IDPL, will help scale up this platform.”