Nagarjuna Constructions and Gayatri Projects to sell 100% stake in Meerut-Muzaffarnagar project on NH 58

Hyderabad-based infrastructure players Nagarjuna Constructions (NCC) and Gayatri Projects are in the final stages of selling their 100% stake in the special purpose vehicle operating the Meerut-Muzaffarnagar project on National Highway 58 to I Squared Capital and International Finance Corporation ( IFC) backed Cube Highways, two sources familiar with the development told ET NOW. ET NOW was the first to report preliminary talks of the deal on April 17th, 2014.

" The project has been operational for the last four years and attracts steady traffic. The deal is likely to be sealed for an enterprise value of around Rs 600 crores. An official announcement is expected shortly," said one of the sources cited above.

" Blackstone, which holds around a 10% stake in NCC is keen that the company divests its assets and reduce the debt burden, " added the second source. Big Bull Rakesh Jhunjhunwala along with other entities also holds 10% stake in the company. As on 30 Sep 2015, NCC had a consolidated debt of Rs 3,504.61 crores. According to the NCC website, the Meerut-Muzaffarnagar section is spread across 79 kms on NH 58 in Uttar Pradesh

Cube Highways has acquired majority stake in Jaipur Mahua Tollway Private Limited (JMTPL). JMTPL operates the 109 km stretch on the Jaipur Agra National Highway 11 in the state of Rajasthan, under the Build Operate Transfer (BOT) scheme, according to the company's website.

I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, and transport in North America, Europe, and select high growth economies. IFC is the private investment arm of the World Bank.

ET NOW is awaiting email responses from NCC, Gayatri projects, I Squared Capital, IFC & Blackstone.