Cintra Acquires 24% Stake in IRB Infra Trust: CCI Approval

New Delhi, Jun 4 (PTI) The Competition Commission of India (CCI) on Tuesday said it has approved Cintra's proposed acquisition of 24 per cent unitholding in IRB Infrastructure Trust and MMK Toll Road Pvt Ltd.

Cintra InvIT Investments BV (Cintra SPV 1) and Cintra IM Investments BV (Cintra SPV 2) collectively belong to the Netherlands-based Ferrovial group.

"The proposed combination involves the acquisition of approximately 24 per cent of the issued and outstanding unitholding (on a fully-diluted basis) along with certain commercially negotiated rights in the Private InvIT (IRB Infra Trust) by Cintra SPV 1.

"Simultaneous acquisition of approximately 24 per cent equity shareholding along with the right to nominate a director on the board of directors of the IM of the Private InvIT by Cintra SPV 2," CCI said in a release.

Ferrovial group is a global developer of transport infrastructure, mobility solutions, engineering and is engaged in the construction of civil works and buildings.

The sponsors of IRB Infrastructure Trust are IRB Infrastructure Developers Ltd (IRB ListCo) and Singapore government's sovereign wealth fund GIC.

MMK Toll Road (IM) is the investment manager of the Sebi-registered IRB Infrastructure Trust.

In another release, CCI has approved the proposed acquisition of Meerut Budaun Expressway Ltd (MBEL) by IRB Infrastructure Trust.

MBEL is a special purpose vehicle which has been incorporated for the development of the Ganga Expressway, while IRB Infrastructure Developers engaged in construction works in engineering, procurement and construction contracts.

The proposed subscription of non-convertible debentures (NCDs) of MBEL by each of IRB and Anahera, respectively. If the parties are unable to complete the subscription for any reason, the InvIT proposes to subscribe to such NCDs of MBEL.

Further, the regulator also granted its approval for the proposed fresh issuance of units by the InvIT to its existing unitholders (each of IRB and one or more of the GIC Unitholders in the InvIT).

"The proposed acquisition of equity shares of MBEL and NCDs of MBEL by the InvIT," CCI said.

Anahera Investment Pte is an affiliate of GIC.

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.