L&T, CPP to sell L&T IDPL to Edelweiss Alternatives backed platform

Larsen & Toubro (L&T) and Canada Pension Plan Investment Board (CPP Investments) have agreed to sell L&T Infrastructure Development Projects Limited (L&T IDPL) to Infrastructure Yield Strategy, a platform backed by Edelweiss Alternatives.

The consideration for the deal is around INR 6,000 crores.

The portfolio of L&T Infrastructure Development Projects includes eight roads and a power transmission asset in India, which span nearly 4,900 lane-kms and around 960ckms, respectively.

Subahoo Chordia — Edelweiss Alternatives Head of Infrastructure Funds said: “Asset monetization and recycling capital holds the key to value creation and development in Infrastructure. We will continue to provide solutions to construction companies and developers to recycle capital to fund their growth.

“On completion of this acquisition, there will be a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making us a leading infrastructure investor in India.”

Edelweiss Alternatives said that after the acquisition, the infrastructure platform will grow to 26 assets with collective annual revenue of around INR 2,700 crores. The platform will be a diverse combination of power transmission and substations, highway assets, and renewables, which are geographically spread over, said the alternative investment fund management platform.

According to Edelweiss Alternatives, the acquisition of L&T Infrastructure Development Projects aligns with the infrastructure yield strategy to generate distributions regularly for investors by purchasing quality operating infrastructure assets with robust cash flows and releasing value via active asset management.

Sreekumar Chatra — Infrastructure Yield Strategy Managing Director 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.”

The closing of the deal is subject to relevant regulatory and other approvals and other customary conditions.