Infrastructure Development Finance Company Ltd (IDFC) and Khazanah Nasional, the investment holding arm of the Malaysian government, today announced plans to enter into a joint venture to set up a dedicated infrastructure development company with a focus on road sector in India.
Initially, Khazanah will hold 80.1-per cent and IDFC the remaining 19.9-per of the equity share capital of the proposed JV. Khazanah and IDFC also propose to invest in convertible instruments issued by the JV.
To begin with, the JV will invest in Jetpur Somnath Tollways Limited (JSTL), subject to receipt of necessary regulatory approvals and permissions, including from the National Highway Authority of India, the two said in stock market filing.
JSTL is a company, which undertakes development of a project involving four-laning the Jetpur-Somnath section of the National Highway No 8D in Gujarat. IDFC Projects Limited (IDFCPL) currently holds 74 per cent of the share capital of JSTL.
The joint venture will initially acquire 48 per cent of the share capital of JSTL from IDFCPL and will ultimately acquire the entire shareholding of IDFCPL in JSTL and hold 74 per cent of the share capital of JSTL.
Khazanah Nasional is the Malaysian government's strategic investor in new industries and markets and trustee to the nation's commercial assets.
Khazanah is also tasked to nurture the development of selected strategic industries in Malaysia with the aim of pursuing the nation's long-term economic interests.
Khazanah has investments in over 50 major companies, both in Malaysia and abroad.