VINCI Acquires 700 km of Highways in India for 150 Billion Rupees

Strategic Acquisition of Key Highway Concessions

VINCI Highways has entered into an agreement with Macquarie Asia Infrastructure Fund 2 to acquire the Safeway Concessions portfolio, which includes nine toll highway concessions in the states of Andhra Pradesh in the southeast, and Gujarat in the west of India. These nine concessions encompass nearly 700 kilometers of highway sections on major national network routes, connecting significant industrial, agricultural, and logistical areas. The Andhra Pradesh sections are notably part of the NH-16 corridor, one of the country's main transport routes and a component of the Golden Quadrilateral connecting Kolkata to Chennai. The assets in Gujarat serve one of India's most industrialized states.

Valuation and Contractual Details

The transaction values Safeway Concessions at approximately 150 billion Indian rupees, which is about 15 times the Ebitda. The nine highways are operated under Toll Operate Transfer (TOT) contracts with the National Highways Authority of India (NHAI), with contractual terms ranging from 2048 to 2058. The concessionaire is compensated based on traffic through the collection of tolls. The final amount of the transaction and the equity contribution will be determined following customary adjustments at closing and the completion of financial structuring.

Optimization and Digitalization Opportunities

VINCI Highways has identified several optimization avenues within the portfolio, both in financial and operational areas. Opportunities for digitalization of toll collection are being considered as part of India's transition to a free-flow system. VINCI Highways has established expertise in India through its subsidiary ViaPlus, based in Hyderabad and employing nearly 400 staff members. The transaction remains subject to approval by the relevant Indian authorities, with financial closing expected by the end of 2026.