Cube Highways Trust has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
Cube Highways Trust has signed a binding commitment letter to acquire four highway and toll road companies from its Sponsor and related entities. The deal covers 100% of Baharampore Farakka Highway Limited (BFHL), 100% of Devanahalli Tollway Private Limited (DTPL), at least 95% of Western MP Infrastructure and Toll Roads Private Limited (WMTPL), and 100% of Chenani Nashri Tunnelway Limited (CNTL). The sellers include the Trust's Sponsor (Cube Highways and Infrastructure V Pte. Ltd.) and another related entity (CH II), making this a related-party transaction. Additionally, the Trust signed a Right of First Offer (ROFO) agreement with the Sponsor, giving the Trust first right to bid on certain assets held by the Sponsor in the future.
This is a major portfolio expansion for the Trust, adding four operating toll road and tunnel assets to its existing highway portfolio, which should boost future revenue and distributions for unitholders. However, since the sellers include the Sponsor, the deal will be closely scrutinised for fairness, and the actual financial terms and valuation will be key drivers of unit price reaction.