UK PE firm Actis opts out of highways JV with Tatas
17 May 2013
British private equity company Actis is preparing to end its road projects joint venture with the Tata Group, selling its 35 per cent stake to the Tata's private equity arm, according to a Times of India report citing an unnamed source.
The JV between Tata Realty & Infrastructure Ltd and Actis was struck three years ago. It was expected to invest $2 billion to develop highway projects. But Actis, one of the earliest private equity investors in Indian market, is realigning its infrastructure interests with particular focus on energy assets.
The joint venture company's initial equity investment was pegged at $200 million, with TRIL investing $122.5 million and Actis $77.5 million for a 65:35 stake holding.
Actis has invested in the Indian joint venture from its global infrastructure fund and a changed view on domestic road projects emanated from there, added the ToI source. Actis couldn't be reached for comments.
Actis manages assets worth over $5 billion. It is selling the TRIL Roads stake to Tata Opportunities Fund. The financial details of the deal, which will close soon, could not be ascertained.
Tata Opportunities Fund, headed by Padmanabh Sinha, mainly invests in Tata group of companies, with stakes in Ginger Hotels and Tata Sky, among others. But it's now looking to invest beyond Tata entities and scanning other investment proposals, says the report.
