The largest construction company in India, Larsen & Toubro, and the manager of a Canadian pension fund, Canada Pension Plan Investment Board, announced that they had reached an agreement to transfer their entire ownership stake in L&T Infrastructure Development Projects and its subsidiaries to the Infrastructure Yield Plus Strategy fund of Edelweiss Alternative Asset Advisors for an enterprise value of Rs6,000 crore.
L&T and the Canada Pension Plan Investment Board each own 51% and 49% of the joint venture, L&T Infrastructure Development Projects. According to a filing with the exchange, L&T and CPP Investments will receive gross proceeds of Rs2,723.4 crore from the stake sale. In addition to continuing to actively invest in India’s infrastructure sector, including IndInfravit, CPP Investments made its initial investment into L&T Infrastructure Development Projects in 2014.
L&T Infrastructure Development Projects’ portfolio in India includes eight roads and one power transmission asset totaling 4,900 lane-kilometers and 960 kilometer-kilometers, respectively. Edelweiss Alternatives will have a diversified portfolio of 26 infrastructure assets, including over 5,100 lane-kms of roads, 1,800 ckms of power transmission assets, and 813 MWp of renewables, according to an exchange filing by Edelweiss Financial.