Acquisition of a 51% stake in the concession company for the SH1 motorway near Hyderabad
Concession lasting a remaining 16 years to operate 206 km of motorway
Acquisition expected to be finalised by end-2024
VINCI Highways, a subsidiary of VINCI Concessions, signed an agreement to acquire a 51% stake in the company “HKR Roadways Limited”, which holds a contract ending in 2041 with the Telangana state government for the concession to the SH1 motorway. Upon closing, VINCI Highways will invest around €40 million of equity in this transaction.
Commissioned in 2014, the motorway is an essential connection spanning 206 km across Telangana, between its capital Hyderabad (population of 11 million) and the north-east of the state.
This acquisition has been made in partnership with the Global Iinfrastructure Partners’ (GIP) Emerging Markets Fund, with VINCI Highways and GIP holding 51% and 49%, respectively, in the concession company.
The acquisition is expected to be finalised by end-2024, subject to approval from the relevant authorities.
It will strengthen the strategic partnership first established with GIP when VINCI Airports took on majority stakes in London Gatwick airport in 2019 and Edinburgh airport in 2024.
Moreover, VINCI Highways already operates in India through its subsidiary ViaPlus, which specialises in electronic toll systems, where it employs nearly 400 people in Hyderabad.
