Cube Highways Trust: Major Block Deal Announcement
Cube Highways Trust, a prominent player in the private sector toll road operating industry, is set to initiate a significant block deal valued at Rs 1,675 crore (approximately $200 million) on September 19. According to insider sources, the transaction encompasses multiple entities within the Cube Highways ecosystem, including Cube Highways and Infrastructure Private Limited, Cube Highways and Infrastructure II Private Limited, Cube Mobility Investment Private Limited, and Cube Highways and Infrastructure ID Private Limited.
Details of the Block Deal
The deal’s floor price has been established at Rs 120 per share, which serves as the basis for evaluating its total value. At this floor price, the core deal size reaches $200 million, though there exists potential for expansion. Specifically, the base agreement concerning this transaction involves the sale of approximately 13.98 crore shares, which represents roughly 10.8 percent of the total outstanding units. To facilitate this undertaking, Cube Highways Trust has secured the services of Axis Capital and JP Morgan as the investment bankers overseeing the transaction.
Strategic Acquisitions: Race for Athang Infrastructure
In a related development, Cube Highways is reportedly leading the competition to acquire Athang Infrastructure, marking it as the initial road portfolio of the sovereign wealth fund National Investment and Infrastructure Fund (NIIF). This proposed deal could range between Rs 6,000 crore and Rs 6,500 crore, highlighting Cube Highways’ aggressive expansion strategy in the infrastructure sector.
Financial Performance of Cube Highways Trust
The financial outcomes for Cube Highways Trust have displayed a positive trajectory. For the quarter ending in June 2024, the company reported a sales growth of 5.92 percent, amounting to Rs 827.25 crore. This marks an improvement over the previous year’s figures, where the net profit stood at Rs 3.86 crore, a significant recovery from a net loss of Rs 20.18 crore incurred during the same period last year. In terms of sales, Cube Highways Trust’s performance in the June 2024 quarter reflects an increase from Rs 781.04 crore in the June 2023 quarter, demonstrating the effectiveness of its operational strategies and potential for future growth.
Summary of Financial Performance
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Sales | Rs 827.25 crore | Rs 781.04 crore |
| Net Profit | Rs 3.86 crore | Net Loss of Rs 20.18 crore |
| Sales Growth | 5.92% | – |
In conclusion, Cube Highways Trust is actively reshaping the infrastructure landscape through substantial financial maneuvers and strategic acquisitions, positioning itself for sustainable growth in the years to come.
