KNR Constructions Limited has announced that it has entered into two Share Purchase Agreements with Cube Highways and Infrastructure III Pte. Ltd. for KNR Chidambaram Infra Private Limited and KNR Tirumala Infra Private Limited. Cube Highways and Infrastructure III will acquire KNR's entire shareholdings in the two Special Purpose Vehicles (SPVs), subject to the shareholding transfer restrictions set out in the concession agreement executed with the National Highway Authority of India (NHAI) and subject to various regulatory and lender approvals.

KNR Chidambaram Infra Private Limited owns a concession to widen to two lanes, maintain and manage a 31km section of National Highway (NH) 227 between Meensurutti and Chidambaram in Tamil Nadu, southern India. KNR expects to receive a total of INR36.46 billion (US$513.0 million) through the sale.

KNR Tirumala Infra Private Limited owns a concession to widen to six lanes, maintain and manage a 61km section of NH 140 between Chittor and Mallavaram in Andhra Pradesh, south-east India. KNR expects to receive a total of INR152.06 billion (US$2.1 billion) through the sale.

Both concessions are structured on the Hybrid Annuity Model (HAM), a hybrid between conventional EPC contracts and BOT (Annuity) projects developed by the National Highway Authority of India (NHAI), and are currently in pre-construction stages.

The transactions are planned to be completed in two stages, with the first stage scheduled to be completed after achievement of full commercial operations and the second stage scheduled to be completed after expiry of the mandatory lock-in period as per the concession agreement.

This follows Cube Highways' acquisition of another Indian highway concession from KNR Constructions last month.