Ferrovial’s Subsidiary Cintra To Acquire Stake in IRB Infrastructure Trust

On March 14, 2024, IRB Infrastructure Developers Ltd informed that Cintra, a subsidiary of Spanish construction giant Ferrovial, has agreed to acquire a 24% stake in IRB Infrastructure Trust from GIC Affiliates.

Details of the Acquisition

On Thursday, the Spanish multinational company Ferrovial, which operates in the infrastructure sector, confirmed that the company’s subsidiary, Cintra, will be acquiring a stake of 24% in IRB Infrastructure Trust for $810 million (approximately ₹6,720 crore). They further added that they are expecting the deal to close by the end of April 2024. The acquisition price and outstanding equity commitments will be funded with equity and, potentially, non-recourse debt and other sources of financing.

Communicating about the same, IRB Infrastructure Developers said in a regulatory filing that the completion of the acquisition is subject to fulfilment of conditions precedent, including receipt of requisite regulatory and third-party approvals. They added that the company will also profit from the growing Engineering, Procurement, and Construction (EPC) and Operations and Maintenance (O&M) order book as the sole project manager to the Trust.

Cintra, S.A. is one of the world’s largest private developers of transport infrastructure. The company has more than 50 years of experience in the development and management of transport infrastructure in the world. In 2021, Cintra acquired a 24.9% stake in IRB Infrastructure Developers.

About IRB Infrastructure Trust

IRB Infrastructure Trust is an infrastructure investment trust registered with SEBI and listed on the NSE. IRB owns 51% of the units in the trust, while GIC affiliates currently hold the remainder. The trust holds a portfolio of 15 road projects spanning 10,567 lane km. Since its establishment in 1998, the company has built over 18,500 lane kilometres of roads in India.

About IRB Infrastructure Developers 

IRB Infrastructure Developers Ltd is an Indian infrastructure development and construction company with extensive road and highway experience. The company is also involved in other business segments in the infrastructure sector, which include construction, maintenance of roads, real estate and airport development.

On March 15, 2024, the share price of IRB Infrastructure Developers opened at ₹58.80.

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