PLUS To Acquire 74 Per Cent Stake In India's Highway Concessionaire

KUALA LUMPUR, Jan 22 (Bernama) -- PLUS Expressways Bhd on Friday entered into a share purchase cum shareholders agreement (SPSA) for a proposed acquisition of up to 74 per cent equity interest in Indu Navayuga Infra Project Private Limited for RM74 million.

Indu Navayuga is the concessionaire of the existing two lane portion from Km285 (near Padalur) to Km325 (near Trichy) on National Highway No.45 in Tamil Nadu, India.

The 25-year concession agreement, signed on May 30, 2006, includes widening the existing two lanes stretching to 38.55 kilometres into four lanes.

The existing shareholders are Navayuga Engineering Company Limited, Indu Projects Limited and Abhishek Developers.

"The project, being the last section of National Highway No.45, is currently 95 per cent completed. Out of the 38.55 kilometres, 33 kilometres have been fully completed.

"The company (Indu Navayuga) is working towards completing the remaining works by the end of first quarter 2010," Plus said in a filing to Bursa Malaysia.

It said the acquisition would be carried in two tranches with the first amounting to 49 per cent of the stake for RM57.3 million upon fulfillment of the conditions precedent and the project's full commercial operation while the balance 25 per cent for RM16.7 million on the third anniversary of the commercial operation.

"The acquisition is in line with PLUS's strategy for expansion into other markets particularly in India which is one of the group's focus countries for expansion.

"This acquisition signifies the group's serious intention to further grow in India, as well as taking a step towards becoming a premier global expressway group," it said.

-- BERNAMA