KKR makes first bet on infra biz with Sterlite power deal
Mumbai: US-based alternative asset major KKR is taking a 74% stake in Sterlite Investment Managers Ltd, which manages an infrastructure investment trust (InvIT) that owns power transmission projects of Sterlite Power Grid Ventures. This would mark KKR’s first big bet on the infrastructure space, said sources familiar with the matter. The deal will also be the first buyout of a listed InvIT by an alternative asset manager, making it one of the more significant liquidity events in the highly leveraged infrastructure sector.
KKR, along with Singapore sovereign wealth fund GIC, will also invest about Rs 2,100 crore in the InvIT, India Grid Trust, taking about a 42% stake. This is part of India Grid Trusts overall raise of about Rs 2,500 crore, where other investors are expected to contribute the rest. KKR will also buy about 15% from Sterlite Power Grid, taking the overall shareholding to 57%.
Sterlite will retain 26% in the investment manager, but will dilute its current 21% stake in the trust to low single digits. KKR and GIC-led trust and investment manager will buy five more transmission projects in the pipeline within two years. The transaction is being done at about Rs 83 per unit — a slight premium to India Grid’s closing price of about Rs 83 on the NSE on Tuesday.
