Infrastructure firm Gayatri Projects is all set to acquire five smaller infrastructure firms in the country, paving the way for its inorganic expansion. The company plans to fund these acquisitions through divestment of 49% equity in favour of Australian multi billion-dollar wealth management firm AMP.
The latter will bring to the table Rs 200 crore through foreign direct investment (FDI) for the planned expansion of Gayatri Infra Ventures (GIVL), a subsidiary of Hyderabad-based developer Gayatri Projects.
The company plans three acquisitions in the north, giving it access to projects on the north-south corridor, and two acquisitions in the south, including that of the Cyberabad Expressway eight-laning project. Western UP Tollways (WUPTL), Gayatri Jhansi Roadways (GJRL), Gayatri Lalitpur Roadways (GLRL), Hyderabad Expressways (HEL) and Cyberabad Expressways (CEL) special purpose vehicle (SPV) are the other acquisition targets.
WUPTL is a joint venture SPV with Satyam-promoted infrastructure firm Mytas and Nagarjuna Construction Company. The plan is to acquire 40% WUPTL stake while 30% each remains with other two partners for the strengthening, improvement and maintenance of NH 58 in Uttar Pradesh. Gayatri also plans to buy out 49% stake of GJRL and GLRL in their joint ventures with IDFC.