Cintra, Ferrovial’s toll road subsidiary, has filed a bid to acquire up to 24.9% of Indian company IRB Infrastructure Developers, representing an investment of around 364 million euro. The deal will be conducted in the form of a preferential share issue, said a Ferrovial press release issued early this month. IRB Infrastructure Developers is a leading player in the Indian market, where it manages 23 projects and around 2,000 kilometers of toll road.
If the deal is completed, Cintra will become a key minority shareholder with representation on the Board. Cintra will also support the company’s development and transfer its extensive international experience in managing toll roads and analyzing new investment opportunities, said the press release. Completion is subject to Cintra, IRB Infrastructure Developers and Virendra D. Mhaiskar (and his family and holding company), IRB´s majority shareholder, executing a definitive agreement regarding the transaction, which must subsequently be approved by the company’s shareholders and cleared by the competent authorities and lenders. Final completion is projected to take place in the first quarter of 2022.
In the event the transaction is completed, a maximum stake of 24.90 % will not grant Cintra controlling rights over IRB Infrastructure Developers. Virendra D. Mhaiskar (and his family and holding company) will continue to be the single largest shareholder of IRB Infrastructure Developers and retain management control.
“This investment in IRB Infrastructure Developers represents a great opportunity for Cintra to expand into a new market for us — India — that has very promising fundamentals for toll road development. IRB has a portfolio of high-quality assets and a platform with the capability to capture some of the strong growth expected in this sector. Cintra would work with IRB to enhance its competitive position in the Indian market. Our international experience as an investor and operator would optimize IRB’s operational capacity and ESG compliance, a field in which Cintra and Ferrovial are international leaders,” said Andrés Sacristán, CEO of Cintra.