CCI approves acquisition of equity share capital of L&T IDPL and Kudgi Transmission

CCI approves acquisition of equity share capital of L&T IDPL and Kudgi Transmission

The investment will be carried out under the Competition Act, 2002

The Competition Commission of India (CCI) has approved the acquisition of 100 percent of the equity share capital of L&T Infrastructure Development Projects Limited (L&T IDPL) and Kudgi Transmission Limited by Epic Concesiones Private Limited and Infrastructure Yield Plus II, respectively.

According to CCI, the proposed combination envisages the acquisition of 51 percent and 49 percent of the equity share capital of L&T IDPL from Larsen and Toubro Limited and CPP Investment Board India Private Holdings respectively, by Epic; and 100 percent equity share capital of Kudgi (a wholly-owned subsidiary of L&T IDPL) by Infrastructure Yield.

Epic is a private limited company, wholly owned by Infrastructure Yield. It shall provide, develop, own, maintain, operate, instruct, execute, carry out, improve, construct, repair, work, administer, manage, control, and transfer infrastructure projects.

Kudgi is engaged in developing a transmission system required for the evacuation of power.

Infrastructure Yield is a scheme of the Infrastructure Yield Trust, an irrevocable and determinate contributory investment trust under the Indian Trusts Act, 1882. It is registered with the Securities and Exchange Board of India (SEBI) as a Category I-Infrastructure Alternative Investment Fund, under the SEBI (Alternative Investment Funds) Regulations, 2012.

It aims to provide investors an opportunity to earn returns based on long-term cash flows and growth through investments in infrastructure assets in the country. Primarily, it invests in securities of special purpose vehicles, companies, units of infrastructure investment trusts, and other structures, for investment in infrastructure assets in accordance with AIF Rules.

L&T IDPL is involved in the business of development, operation, and maintenance of infrastructure projects under the Public Private Partnership model, through its subsidiaries.

The subsidiaries enter into concession agreements with the National Highways Authority of India/state authorities and/or transmission service agreements with power supply generation/transmission/distribution companies for the development, operation, and maintenance of infrastructure projects under the Design-Build-Finance-Operate-Transfer/Build-Operate-Transfer/Build-Operate-Transfer Annuity/Build-Operate-Own-Maintain mode with the concession/agreement period ranging from 15 to 35 years.

At the end of the relevant concession period, the entire facilities are transferred to the concerned government authorities.