CPP Investments, L&T sell Indian PPP platform to Edelweiss

A fund managed by Edelweiss Alternatives is acquiring an Indian public-private-partnership projects development platform from Canada Pension Plan Investment Board (CPP Investments) and Larsen & Toubro (L&T) for INR27.23bn (€309.4m).

L&T and CPP Investments have agreed to sell their respective 51% and 49% stake in L&T Infrastructure Development Projects Limited (L&T IDPL) to Epic Concesiones Private Limited, a portfolio company of the Edelweiss-managed Infrastructure Yield Plus II fund for INR27.23bn (€309.4m) in total.

L&T IDPL holds assets including operational toll and annuity road concessions and power transmission lines. L&T IDPL is also a sponsor of IndInfravit Trust, India’s first privately listed infrastructure investment trust.

As part of the transaction, L&T and CPP Investments plan to set up a new entity to be the sponsor of IndInfravit.

CPP Investments initially invested in L&T IDPL in 2014. Indian multinational conglomerate L&T said the disposal is in line with its strategy of reducing its exposure to the non-core asset-heavy developmental projects portfolio.

DK Sen, director and Sr executive VP in charge of L&T’s developmental projects, said: “This development is a significant step towards the execution of our strategic Lakshya 2026 plan and houses L&T IDPL with Edelweiss Alternatives, an established and reputed alternatives platform with a better strategic fit.

“The transaction is a win-win for both L&T and Edelweiss. It will release growth capital for the L&T Group. Also, it will provide Edelweiss Alternatives with access to a good quality portfolio of assets.”

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