KKR NYSE:KKR, a global investment firm that has invested extensively in India, is backing Vertis Infrastructure Trust as it moves toward a possible acquisition of eight road assets from Megha Engineering & Infrastructures, a Hyderabad-based developer with projects in tunnels, ports, water systems and power assets across more than 20 countries. Vertis has emerged as the leading bidder and is now in advanced discussions to acquire the roads, which are located in the southern Indian states of Andhra Pradesh and Telangana. Megha Engineering is seeking a valuation of about $800 million, including debt, for the portfolio.
Megha Engineering has been working with an adviser on the potential sale, and an agreement could be reached in the coming months. However, discussions remain in progress and may still end without a completed transaction. KKR declined to comment, while Megha Engineering, Vertis Infrastructure Trust and Ontario Teachers' Pension Plan, a backer of Vertis, did not respond to requests for comment.
For KKR investors, the proposed deal could add to the firm's already significant exposure to Indian infrastructure. KKR has previously invested in the National Highways Authority of India's infrastructure investment trust, suggesting that the firm remains interested in the country's road and transport assets. A completed acquisition would also give Vertis control of a sizeable eight-road portfolio, although the final valuation, financing structure and transaction terms have not yet been disclosed.