Cube Highways Trust, managed by Cube Highways Fund Advisors Pvt Ltd, has announced a significant stride in expanding its highway assets portfolio. In a strategic move, the Trust is set to acquire seven prominent highway assets from Singapore-based Cube Highways and Infrastructure III Pte Ltd and Cube Highways Infrastructure Pte Ltd. Valued at a substantial enterprise worth of Rs 5,172 crore, these assets encompass a total of approximately 2,200 lane kilometres across key regions including Andhra Pradesh, Maharashtra, Telangana, and Tamil Nadu.
The acquisition, approved by the board of directors of the investment manager, signifies Cube Highways Trust’s commitment to bolstering its presence in the infrastructure landscape. Pending the nod from Ordinary Unitholders of Cube InvIT, the proposed acquisition is poised to fortify the Trust’s position in the highway sector.
Commenting on the development, Cube InvIT group CFO, Pankaj C Vasani, emphasised the significance of the acquisition, highlighting the enterprise value of Rs 5,172 crore as of February 29, 2024. The funding for this strategic move will be sourced through a blend of internal accruals and debt, subject to requisite approvals.
In line with transparency and governance norms, the board has greenlit the initiation of a postal ballot notice to seek the approval of ordinary unitholders for the proposed acquisition. This move underscores Cube Highways Trust’s commitment to ensuring stakeholder alignment and engagement.
Upon completion of the acquisition, Cube Highways Trust’s asset portfolio is poised to witness significant diversification, encompassing 25 assets spread across 13 states. This expansion reaffirms the Trust’s dedication to leveraging the public-private partnership (PPP) model to drive impactful infrastructure development in collaboration with central and state governments.