October 15, 2012
IRB Infrastructure Developers (IRB) has completed the acquisition of 74 per cent stake of MVR Infrastructure & Tollways. IRB had earlier entered into a definitive agreement with the shareholders of MVR Infra to acquire their entire holding. As per this agreement, acquisition of remaining 26 per cent holding of MVR Infra will be completed once NHAI approves the share transfer.
Virendra Mhaiskar, CMD, IRB said, “Inorganic growth through acquisition of BOT projects in the secondary market has been an integral part of our evolving growth strategy. We will continue to evaluate such opportunities in future which can be value accretive.”
MVR Infra is the concessionaire for Omallur Salem–Namakkal BOT road project in Tamil Nadu. The company was formed for the purpose of widening of existing two-lane road to four-lanes from Km 207.050 (Salem) – Km 248.625 covering 41.55 Kms, on NH-7 in the State of Tamil Nadu. This also involved improvement, operations and maintenance of Km 199.200 (start of Salem Bypass) Km 207.050 (Salem) on NH-7. The concession agreement for this project was executed in February 2006 for a 20 year period (commencing from the appointed date) including construction period of 2.5 years. Toll collection started in August 2009.
The project stretch of 68.7 kms is located on the busy Bangalore–Kanyakumari section of NH 7. This project constitutes a 68.625 km four-lane highways between Omallur and Namakkal in the state of Tamil Nadu. Also, Salem is surrounded by steel and mining industry. The project stretch connects Hyderabad, Bangalore in the North to Salem, Namakkal, Karur, and Kanyakumari in the South.