L&T, 6 others pick 8.03% stake in Cube Highways Trust for Rs 1,243 crore

Larsen & Toubro, its three affiliates and three other entities on Thursday picked up an 8.03 per cent stake in Cube Highways Trust for Rs 1,243 crore through open market transactions. The sellers involved in the transaction, include Cube Highways and Infrastructure I-D Pte, Cube Highways and Infrastructure Pte and Cube Mobility Investments through separate bulk deals on the BSE.

Larsen & Toubro (L&T), L&T Welfare Company, L&T Employees Welfare Foundation and L&T Officers and Supervisory Staff Provident Fund, SBI Mutual Fund, Kotak Mahindra Life Insurance and ASK Financial Holdings purchased 10.36 crore units or 8.03 per cent unitholding in Cube InvIT, as per the data.

The units were bought at an average price of Rs 120 apiece, taking the combined deal value to Rs 1,243.20 crore.

After the stake buy, Larsen & Toubro’s holding in Cube Highways Trust (Cube InvIT) has increased to 9.24 per cent from 3.75 per cent.

Details of the other buyers of Cube Highways Trust’s units could not be ascertained on the exchange.

Meanwhile, Cube Highways and Infrastructure I-D, Cube Highways and Infrastructure and Cube Mobility Investments disposed of 15.60 crore units or a 12.09 per cent unitholding in Cube Highways Trust. The units were offloaded at an average price of Rs 120 apiece, taking the transaction value to Rs 1,872 crore. Cube Highways Trust’s units rallied 20 per cent to close at Rs 120 apiece on the BSE.

In July, Cube Highways Trust on Wednesday posted a Rs 3.8 crore profit for the June quarter, on account of higher income.

The company had clocked a loss of Rs 20 crore in the year-ago period. Its total income rose to Rs 830.9 crore from Rs 781.6 crore, while expenses stood at Rs 823 crore, as against Rs 799.5 crore.

In April, Cube Highways Trust, managed by Cube Highways Fund Advisors Pvt Ltd, said it will acquire seven highway assets from Singapore-based Cube Highways and Infrastructure III Pte Ltd and Cube Highways Infrastructure Pte Ltd at an enterprise value of Rs 5,172 crore.

Cube Highways invest in road and highway projects along with other select infrastructure sectors in India.

It is engaged in implementing the public-private partnership (PPP) model in the country’s highways sector to operate and manage highway projects in association with the central and state governments.

The Singapore-based Cube Highways is backed by a diversified investor base, including an arm of Abu Dhabi Investment Authority, British Columbia Investment Management Corporation and Abu Dhabi’s sovereign investor Mubadala Investment Company, among others.