VINCI signs an agreement to acquire a majority stake in a motorway concession in India

9 September 2024 - 8:30 am - Acquisitions - India

◼ Acquisition of a 51% stake in the concession company for the SH1 motorway near Hyderabad
◼ Concession lasting a remaining 16 years to operate 206 km of motorway
◼ Acquisition expected to be finalised by end-2024

VINCI Highways, a subsidiary of VINCI Concessions, signed an agreement to acquire a 51% stake in the company “HKR Roadways Limited”, which holds a contract ending in 2041 with the Telangana state government for the concession to the SH1 motorway. Upon closing, VINCI Highways will invest around €40 million of equity in this transaction.

Commissioned in 2014, the motorway is an essential connection spanning 206 km across Telangana, between its capital Hyderabad (population of 11 million) and the north-east of the state.

This acquisition has been made in partnership with the Global Iinfrastructure Partners’ (GIP) Emerging Markets Fund, with VINCI Highways and GIP holding 51% and 49%, respectively, in the concession company.

The acquisition is expected to be finalised by end-2024, subject to approval from the relevant authorities.

It will strengthen the strategic partnership first established with GIP when VINCI Airports took on majority stakes in London Gatwick airport in 2019 and Edinburgh airport in 2024.

Moreover, VINCI Highways already operates in India through its subsidiary ViaPlus, which specialises in electronic toll systems, where it employs nearly 400 people in Hyderabad.

 

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About VINCI
VINCI is a global player in concessions, energy and construction, employing 280,000 people in more than 120 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, we are committed to operating in an environmentally, socially responsible and ethical manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities. Based on that approach, VINCI’s ambition is to create long-term value for its customers, shareholders, employees, partners and society in general.