IRB Infrastructure completes acquisition of MVR Infrastructure & Tollways
10 Oct 2012
Integrated infrastructure development and construction company IRB Infrastructure Developers Ltd (IRB), today said it had completed the process of acquisition of a 74-per cent stake in MVR Infrastructure & Tollways Private Ltd (MVR Infra).
IRB is one of the largest private developers in India and the largest toll road operating company in India. IRB's total order-book is Rs. 9,100 crores.
MVR Infra is the concessionaire for Omallur Salem - Namakkal BOT Road Project in Tamilnadu, for which i holds a 20-year concession, including construction period of 2.5 years. It started toll collection in August 2009.
With its acquisition, MVR Infra has now become a subsidiary of IRB effective this month.
Earlier, in May 2012, BSE- and NSE-listed IRB, a leading highway infrastructure developer, had entered into a definitive agreement with the shareholders of MVR Infra to acquire their entire holding in this company.
According to this agreement, IRB will acquire the remaining 26 per cent holding of MVR Infra once the National highway Authority of India approves the transfer of the 26-per cent holding to IRB.
''Inorganic growth through acquisition of BOT projects in the secondary market has been an integral part of our evolving growth strategy," says Virendra Mhaiskar, chairman and managing director of IRB . "We will continue to evaluate such opportunities in future which can be value accretive.''
