Infrastructure Yield Plus to acquire 100% of L&T IDPL

Trilegal advised Infrastructure Yield Plus Strategy

Trilegal advised Infrastructure Yield Plus Strategy, a fund managed by Edelweiss Alternatives, on the acquisition of a 100% stake in Larsen and Toubro’s Infrastructure Development Projects (L&T IDPL) for INR60 billion (USD727.58 million). L&T was advised by AZB & Partners.

L&T IDPL is co-owned by the Canada Pension Plan Investment Board (CPPIB). L&T sold eight roads and one power transmission set of assets in India. The sale is awaiting approval from the Nationwide Highways Authority of India and the Securities and Exchange Board of India.

Trilegal’s projects partner Neeraj Menon and corporate partner Kunal Chandra led the discussions and formalities involved in the deal. AZB advised L&T on Indian law matters. The firm was represented by partners Gautam Ganjawala and Qais Jamal, counsel Vivek Pillai and senior associate Bhargavy Ramesh.

Trilegal’s role involved due diligence on the entire portfolio of assets to identify the key risks and consents required, and providing advice on the best possible structure to consummate the transaction while considering tax, legal and other commercial factors. The firm also advised on drafting, negotiating and finalising the transaction documents with both selling shareholders.

Other partners involved were Nisha Kaur Uberoi and Rudresh Singh (competition law), Nayantara Nag (projects), Ameya Khandge (banking and finance), Atul Gupta (labour and employment), Shruti Rajan (financial regulatory) and Bhakta Patnaik (capital markets).

Trilegal attorneys who were part of the deal team were: counsel Romit Dey, Swathy Pisharody, Astha Srivastava, Chitra Rentala and Kanishka Maggon; senior associates Akshita Amit, Nikhil Khurana, Shouri Bhat and Deepika Bahirwani; and associates Anushka Sinha, Arohi Londhe, Charulatha Jagadish, Hitesh Kumar A, Kunal Paleja, Natasha Rao, Pragya Pugalia, Rishabh Garodia, Rishabh Sharma, Smeet Anklesaria, Mahima Zamindar, Paridhi Khuble, Madhav Kapoor, Varunavi Bangia and Shaurya Kashyap; and principal consultant Rajesh Modani.

The sale comes on the back of L&T’s decision to offload non-core assets and maintain an asset-light strategy. While L&T has a 51% stake in its infrastructure, transportation and energy firm, the CPPIB enjoys a 49% stake.

L&T’s operational team, with years of successful experience, is expected to join the fund house as well, those who were in the know of the transaction said.

Following this buyout, Infrastructure Yield Plus Strategy will own 26 assets with a cumulative estimated annual revenue of INR27 billion. The funding platform will boast a diverse mix of assets – power transmission, renewables, and highways spread across India.

For the Edelweiss fund, this acquisition is in line with its infrastructure yield strategy to generate regular distributions for investors by acquiring quality operating infrastructure assets with strong cash flows and unlocking value through active asset management.