<article>Global private equity major<a href="https://www.dealstreetasia.com/?s=KKR" target="_blank" rel="noopener noreferrer"> KKR</a> and Singapore&#8217;s sovereign wealth fund <a href="https://www.dealstreetasia.com/?s=GIC" target="_blank" rel="noopener noreferrer">GIC</a> have together invested $363 million to acquire a controlling stake in <a href="https://www.dealstreetasia.com/?s=India Grid Trust (IndiGrid)" target="_blank" rel="noopener noreferrer">India Grid Trust (IndiGrid)</a>, the latter announced on Saturday.</article>

Global private equity major<a href="https://www.dealstreetasia.com/?s=KKR" target="_blank" rel="noopener noreferrer"> KKR</a> and Singapore&#8217;s sovereign wealth fund <a href="https://www.dealstreetasia.com/?s=GIC" target="_blank" rel="noopener noreferrer">GIC</a> have together invested $363 million to acquire a controlling stake in <a href="https://www.dealstreetasia.com/?s=India Grid Trust (IndiGrid)" target="_blank" rel="noopener noreferrer">India Grid Trust (IndiGrid)</a>, the latter announced on Saturday.
As part of the transaction, KKR and GIC have invested Rs 1,084 crore ($157 million) and Rs 980 crore ($142 million), respectively, to collectively own 42 per cent of IndiGrid’s outstanding units. KKR has also applied to become a sponsor of IndiGrid and plans to acquire an additional 15 per cent of IndiGrid’s total units from Sterlite Power.
Following the closing of the transaction, KKR and GIC will collectively own approximately 57 per cent of IndiGrid’s outstanding units, IndiGrid said in a statement.
The deal marks KKR&#8216;s first infrastructure investment in Asia since it set up a team late last year that focuses on the sector in the region.
In a separate transaction, KKR will additionally acquire a majority shareholding in Sterlite Investment Managers Limited, the investment manager owned by Sterlite Power. Sterlite Power established IndiGrid in 2016 and will remain a sponsor and project manager of IndiGrid, the statement added.
&#8220;Asia Pacific is a core focus for KKR’s global infrastructure strategy, and India is key market for us in the region given its dynamism, the scale of investment opportunities and its crucial need for capital solutions,&#8221; David Luboff, Member &amp; Head of Asia Pacific Infrastructure at KKR, said.
The investment proceeds will be used by IndiGrid to purchase five electricity transmission assets worth Rs11,500 crore ($1.66 billion) from Sterlite Power, the company said.
A share purchase agreement for the two operational transmission assets &#8212; NRSS XXIX and OGPTL &#8212; has been signed, while three additional assets will be purchased once they become operational, the infrastructure investment trust added.
IndiGrid currently manages a portfolio of six electricity transmission assets with a total network of power transmission lines that span more than 3,361 circuit kilometres across nine Indian states. Following the completion of the proposed acquisitions, IndiGrid’s assets under management will rise to Rs17,000 crore ($2.5 billion).
Harsh Shah, CEO of IndiGrid, said, &#8220;We are well on our way to achieving Rs 30,000 crore of assets under management by 2022 while also providing stable and predictable returns to our investors.&#8221;
&#8220;India holds a tremendous opportunity for infrastructure investment, in the trillions of dollars in the coming decades,&#8221; added Sanjay Nayar, Member &amp; CEO of KKR India. &#8220;We believe addressing the country’s infrastructure needs is a priority for the government, industries and communities across India alike, and we are excited to make our foray into this market and contribute as a solutions provider.&#8221;
Edelweiss and EY are acting as IndiGrid and KKR&#8217;s M&amp;A advisors, respectively.
Also Read:
<a href="https://www.dealstreetasia.com/stories/india-indigrid-acquires-3-transmission-assets-buys-46-stake-in-patran-for-36m-92787/">India: IndiGrid acquires 3 transmission assets, buys 46% stake in Patran for $36m</a>
<a href="https://www.dealstreetasia.com/stories/india-grid-trust-kick-roadshows-113022/">India Grid Trust kickstarts roadshows to raise fresh capital of up to $420m</a>

KKR and GIC have invested Rs 1,084 crore ($157 million) and Rs 980 crore ($142 million), respectively, to collectively own 42 per cent in IndiGrid.

KKR, GIC acquire controlling stake in India's IndiGrid for $363m

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KKR, GIC acquire controlling stake in India's IndiGrid for $363m

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