ADIA in talks to acquire stake in Cube Highways

Abu Dhabi Investment Authority (ADIA) is in negotiations to invest $200m in toll roads platform Cube Highways and Infrastructure in exchange for a minority interest.

This would be the first direct investment of ADIA in India’s toll road programme, according to a report by the Economic Times.

ADIA has previously invested in two Indian renewable energy firms Renew and Greenko.

Cube Highways owns, manages and operates four toll road projects in India covering nearly 1,000km, through Mahua Bharatpur Expressways, Jaipur-Mahua Tollway Private, Andhra Pradesh Expressways and Western UP Tollway.

It was first established by private equity firm I Squared Capital and World Bank’s International Finance Corporation (IFC).

An official aware of the development told the financial publication: “Cube has been in discussions with investors for months.

“ADIA pipped Allianz, the global insurer, for the stake. Canada's CDPQ was also in the fray but opted out before.”

Citing sources, the report stated that a decision on the proposed investment is likely to be expected in two to three weeks.