New Delhi, Jan 14 (PTI) The Competition Commission of India (CCI) on Tuesday approved Ashoka Buildcon’s proposal to acquire the remaining 34 per cent stake in Ashoka Concessions Ltd.
Currently, Ashoka Buildcon Ltd (ABL) owns a 66 per cent holding in Ashoka Concessions Ltd (ACL). After the CCI’s approval, ACL will become a wholly-owned subsidiary of Ashoka Buildcon.
The proposed combination relates to the acquisition of 34 per cent equity shareholding of Ashoka Concessions by Ashoka Buildcon and certain convertible instruments of ACL by ABL and Viva Highways, CCI said. Viva Highways is a subsidiary of Ashoka Buildcon.
Ashoka Buildcon is engaged in engineering, procurement and construction (EPC) in various sectors, and operation and maintenance of roads and highways. It operates road assets through various models like EPC, Build Operate and Transfer (BOT) and Hybrid Annuity Model (HAM) models.
“CCI approves the proposed acquisition of 34 per cent equity shareholding of Ashoka Concessions by Ashoka Buildcon and certain convertible instruments of ACL by ABL and Viva Highways (Viva); and 26 per cent shareholding of Jaora Nayagaon Toll Road Company (JN) by Viva,” CCI said in a post on X on Tuesday.
ACL, the infrastructure arm of the Ashoka Group, is active in the operation and maintenance of roads and highways in India through its various subsidiaries, which operate road assets.
The firm was floated by ABL to bring the various BOT-based road and highway projects under one umbrella.
JN, a BOT concessionaire, has been granted a concession by the Madhya Pradesh Road Development Corporation for reconstruction, strengthening, widening, and rehabilitation of the state highway (SH)-31.
In October 2024, ABL said it would acquire 100 per cent of the investments of investors in ACL for about Rs 1,526 crore.
Further, the company said it has entered into a share purchase agreement with the investors, Macquarie SBI Infrastructure Investments and SBI Macquarie Infrastructure Trust, to acquire the remaining 34 per cent of equity shares in ACL.
Additionally, Viva Highways will acquire a 26 per cent stake from investors, in its affiliate, Jaora Nayagaon Toll Road Company, for Rs 150 crore.
Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace. PTI HG ANU HG BAL BAL
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