India: CAM NXT-Infra Trust Highway Acquisition of 5 Actis/KMC Assets

• NXT-Infra Trust acquired five highway companies from entities belonging to the Actis Group and KMC Constructions Limited.
• Cyril Amarchand Mangaldas provided legal advisory services to NXT-Infra Trust for this acquisition.
• The consideration for the deal comprised a combination of cash and preferentially issued units.
• The acquired assets include Darah Jhalawar Highways, Vadodara Kim Expressway, Calicut Expressway, Vindhyachal Expressway, and Second Vivekananda Bridge Tollway Company.
• This transaction highlights innovative financing structures and the growing role of Infrastructure Investment Trusts in Indian highway M&A.

Lawyers advising on infrastructure M&A in India should particularly note this significant transaction involving an Infrastructure Investment Trust and the use of preferential units, as it could serve as a model for structuring future deals.

NXT-Infra Trust has successfully completed a significant acquisition within India's burgeoning infrastructure sector, taking ownership of five distinct highway companies. This strategic move involved the Infrastructure Investment Trust (InvIT) purchasing these vital assets from entities affiliated with the Actis Group and KMC Constructions Limited. The comprehensive deal was structured with a multi-faceted consideration package, combining both a cash component and the issuance of preferentially issued units to the selling parties.

The portfolio of acquired assets underscores the substantial nature of this CAM NXT-Infra Trust highway acquisition. It encompasses key road infrastructure projects across various regions, specifically including Darah Jhalawar Highways, Vadodara Kim Expressway, Calicut Expressway, Vindhyachal Expressway, and the Second Vivekananda Bridge Tollway Company. Throughout this complex transaction, NXT-Infra Trust received legal advisory services from Cyril Amarchand Mangaldas, a prominent law firm in the Indian legal landscape.

This particular Infrastructure Investment Trust India acquisition stands out not only for the scale of assets involved but also for its innovative financing approach. The integration of preferentially issued units as a significant part of the consideration package represents a sophisticated strategy for funding large-scale infrastructure deals. This method allows the sellers to retain an economic interest in the future performance of the acquired assets, thereby aligning long-term objectives and potentially streamlining the transition of ownership.

For legal professionals and industry stakeholders closely observing Indian highway infrastructure M&A, this transaction offers valuable insights into evolving deal structures. The strategic use of preferential units in such a substantial InvIT acquisition could establish a notable precedent. It demonstrates a flexible and potentially attractive alternative to traditional, purely cash-based acquisitions, providing a robust blueprint for future complex infrastructure divestments and investments across the nation.

The acquisition by NXT-Infra Trust, with Cyril Amarchand Mangaldas providing expert counsel, reflects a continuing trend of consolidation and strategic investment within India's critical road infrastructure sector. The Actis Group KMC Constructions sale of these five highway companies to an InvIT highlights the increasing role of such investment vehicles in providing liquidity to developers and operators, while simultaneously offering stable, yield-generating assets to investors.

This transaction, encompassing the Darah Jhalawar Highways deal and the other four highway companies, serves as a significant benchmark for structuring future deals in the sector. Lawyers advising on infrastructure M&A in India should particularly note this significant transaction involving an Infrastructure Investment Trust and the use of preferential units, as it could serve as a model for structuring future deals. Its successful execution underscores the evolving sophistication of financial and legal strategies employed in the country's infrastructure development and investment landscape.

Lawyers advising on infrastructure M&A in India should note this significant transaction involving an Infrastructure Investment Trust (InvIT) and the use of preferential units, which could serve as a model or benchmark for structuring future deals in the sector.

Source: Original reporting via SCC Times