Singapore-based company Cube Highways II has announced the acquisition of Farakka-Raiganj Highways Limited (FRHL), a toll road operator in the state of West Bengal, India, from HCC Concessions.

The deal was executed by Cube Highways ISQ Global Infrastructure Fund II for an undisclosed sum.

Cube Highways director and I Squared Capital managing partner Gautam Bhandari said: “Completing the acquisition during the challenges of the Covid-19 pandemic is a testament to the operational capabilities of the Cube Highways team and the strength of the platform.

“Cube Highways worked constructively with the seller to restructure the transaction so that risks are more appropriately shared to achieve a win-win outcome.

“Successful closing of this transaction, despite Covid, demonstrates the execution leadership of Cube Highways and makes it a partner of choice for all leading Indian infrastructure road construction companies that seek to monetise their assets and recycle capital.”

Currently, FRHL operates a 100km four-lane toll road between Farakka and Raiganj in the eastern state of West Bengal.

The toll road contract was secured by the company through competitive bidding in 2010 under a 30-year concession for widening a two-lane highway to a four-lane configuration.

Part of National Highway-12, the toll road is said to be one of the key roads in West Bengal, connecting major tourist attractions and trade centres from Kolkata to Siliguri and Darjeeling.

It is also a key route to North Bengal, North-East India, Nepal and Bhutan.

Upon completion of the deal, Cube Highways will have a portfolio of 27 highways with nearly 8,400 lane-km across India.