Singapore-based Cube Highways & Infrastructure has reached an agreement to acquire a 39% stake in Ghaziabad-Aligarh Expressway, an associate of Bharat Road Network (BRNL).

If the proposed transaction materialises, this would be the third acquisition for Cube Highways this year.

In a stock exchange filing, BRNL said: “The equity value of the proposed transaction is subject to adjustments of debt and other capital and operational costs at closing date and hence, net consideration receivable is not ascertainable at this stage.”

The transaction is likely to result in a net income of around Rs1.5bn ($21.65m) for BRNL and set the enterprise value of the associate company at Rs18.3bn ($264.18m), according to a report by the Press Trust of India.

Ghaziabad-Aligarh expressway was developed with an investment of Rs19.29bn ($278.44m). The four-lane road is 126.3-km long.

“Ghaziabad-Aligarh expressway was developed with an investment of $278.44m.”

In June 2015, the expressway started collecting toll and has another 16 years to generate toll revenue.

Cube Highways & Infrastructure operates as a joint venture (JV) between private equity firm I Squared Capital and the World Bank’s International Finance Corporation. Sorry, there are no polls available at the moment.

Other shareholders of the JV include Mitsubishi, East Nippon Expressway Company, Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development, and Japan Expressway Company International.

In March, Cube Highways and Infrastructure signed an agreement with Reliance Infrastructure to acquire a 100% stake of DA Toll Road Private Limited (DATRPL) in the state of Haryana/Uttar Pradesh, India.

In February, the company signed a deal to gain a hybrid annuity model (HAM) project in the Indian state of Tamil Nadu.