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Alternative Investment

Company backed by Edelweiss Alternative to buy L&T IDPL

Canada Pension Plan Investment Board (CPP Investments) announced late on Friday that it has agreed to sell its 49% stake in L&T Infrastructure Development Projects (L&T IDPL).

Larsen & Toubro (L&T), which holds the remaining 51% stake in the firm, will also be selling its stake, as per the press release.

Epic Concesiones, a portfolio firm of Infrastructure Yield Plus strategy managed by Edelweiss Alternative Asset Advisors, will buy the entire stake for an enterprise value of Rs 6,000 crore, according to the companies.

Also Read: L&T net rises 23% in Q2FY23 on robust order inflow

Gross proceeds to L&T and CPP Investments are likely to be Rs 2,723 crore (C$450 million), before closing adjustments and other terms of the transaction.

As per its FY22 annual report, L&T IDPL recorded total revenue of Rs 128 crore and a net loss of Rs 43 crore, with a negative earnings per share of Rs 0.68.

L&T IDPL, a significant player in Indian infrastructure, holds assets including operational toll and annuity road concessions, and power transmission lines.

Also Read: L&T Finance Holdings profit increases 81%

It is also a sponsor of the IndInfravit Trust (IndInfravit), India’s first privately-listed infrastructure investment trust or InvIT.

As part of the transaction, L&T and CPP Investments will establish a new entity to be the sponsor of IndInfravit, subject to regulatory and other approvals.

CPP Investments initially invested in L&T IDPL in 2014. The transaction is subject to customary closing conditions and regulatory approvals.

The L&T stock closed at Rs 2,173.80, down 0.14%, on Friday.

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