VINCI Highways, a subsidiary of VINCI Concessions, has agreed to buy a highway concession in India from Macquarie Asset Management at an enterprise value of about 150bn Indian rupees (€1.4bn).
The deal is transacted at a multiple of around 15x Ebitda. Vinci said the final amount of the transaction and equity investment would be determined after the usual adjustments at the closing date and finalisation of the financial structuring of the transaction.
What is known as the Safeway Concessions portfolio is held in Macquarie Infrastructure Fund 2. It comprises nine toll highway concessions in the Indian states of Andhra Pradesh, in south-east India, and Gujarat, in the west of the country.
These nine concessions total nearly 700 kilometres of highway sections located on key axes of the national network, linking important industrial, agricultural and logistics areas. The sections in the State of Andhra Pradesh are located on the NH-16 corridor, part of the “Golden Quadrilateral” linking Kolkata to Chennai, one of the country’s main transport routes. Gujarat’s assets serve one of India’s most industrialied states.
These highways are operated under TOT (Toll Operate Transfer) contracts with the National Highway Authority of India, with contractual maturities ranging from 2048 to 2058. The concessionaire is remunerated through toll revenues generated by traffic.
The acquisition of a highway portfolio of this size and quality is a rare opportunity in a fast-growing market, said the French company in a statement. “It is perfectly in line with VINCI’s long-term investment strategy in mobility infrastructure.
“At this stage, VINCI Highways has identified optimisation opportunities across the portfolio both financially and operationally (operational processes, road safety, environmental performance). Further opportunities are expected in toll digitalisation as India transitions to a free-flow system,” the firm added.
“In this regard, VINCI Highways has recognised expertise in the country through its subsidiary ViaPlus, which employs nearly 400 people in Hyderabad.”
The transaction is subject to approval by the relevant Indian authorities and financial closing is expected by the end of 2026.
