The Proposed Combinationinvolves acquisition of 100% of the equity and compulsorily convertible debentures (CCDs) of the five special purpose vehicles (SPVs) by IndInfravit and allotment of units of IndInfravit to CPHI-4 for the purpose of part-funding the acquisition of SPVs.
IndInfravit was set up on 7 March 2018, as an irrevocable trust under the provisions of the Indian Trusts Act, 1882. It is registered as an infrastructure investment trust under the SEBI (Infrastructure Investment Trusts) Regulations, 2014 (as amended) (InvIT Regulations) to invest in road infrastructure assets in India. Presently, it has a portfolio of 13 road assets across six states and a network of approximately 5,000 lane kms. IndInfravit’s initial portfolio of assets comprised of five toll road projects in the states of Rajasthan, Karnataka, Tamil Nadu, and Telangana. Subsequently, IndInfravit added another eight road assets in the states of Rajasthan, Karnataka, Madhya Pradesh, Telangana and Maharashtra. Out of these eight projects, six are NHAI projects and two are state projects. These toll roads are operated and maintained pursuant to concessions granted by the NHAI/state authorities.
CPHI-4 is a Canadian corporation and an investment holding company which invests in a diversified portfolio of assets. Canada Pension Plan Investment Board (CPPIB) is an investment management organization that invests the funds transferred to it by the Canada Pension Plan (CPP Fund) that are not needed by the CPP Fund to pay current benefits on behalf of 21 million contributors and beneficiaries. In order to build a diversified portfolio of assets, CPPIB invests in public equities, private equities, real estate, infrastructure, and fixed income instruments.
The five Target SPVs are engaged in the operation and maintenance of highways in the states of Andhra Pradesh, Uttar Pradesh, Bihar and Maharashtra.
