IL&FS Transportation Networks Limited (ITNL), which is looking to pare debt, may be left with not a single of the 28 road projects.
Even before the crisis at the debt-laden IL&FS Group came to the fore, ITNL was already in discussions with to sell five of its road assets.
"Of the 28 road assets that it currently holds, the company has 19 operational assets. Seven of these operational projects are most likely to be bought by Singapore-based Cube Highways and Infrastructure Pte," said a source.
It may take a couple of months to formally ink the term sheet after following the due process as laid by National Company Law Tribunal (NCLT).
This leaves ITNL with 12 operational road assets, wherein another bunch of nine is also in the process of due diligence. Different players like National Investment and Infrastructure Fund (NIIF) and US private equity firm KKR & Co are also evaluating to take the pie. Given the initial stage of discussions underway, a formal announcement may be out after four to six months.
Details were not immediately available on which of the projects are being on the negotiation table with Cube Highways and Infrastructure Pte, NIIF and KKR & Company.
The balance three road assets are approaching end of their concession period, thereby making them unattractive for acquisition by any private equity firm or infrastructure company.
From the bag of 28 road projects, five are at different stages of construction. As reported earlier, the National Highways Authority of India (NHAI) may terminate the bid awarded by ITNL or IL&FS Group and put the projects back into the bidding process.
There are four other projects with ITNL that are likely to face termination from government.
"This shows that ITNL is insolvent and there will be redundant cash flows. Some months down the line, among the biggest Built-Operate-Transfer (BOT) player ITNL will be a company without any assets with themselves," the source said.
TOLLING TO STOP
- Total ITNL assets: 28
- Talks with Cube Highways : 7
- Talks with different firms : 9
- Concessions to get over : 3
- Under construction : 5
- Facing termination : 4
