New Delhi, April 11 (IANS): Engineering major Larsen & Toubro (L&T) has announced the completion of the divestment of L&T Infrastructure Development Projects Limited (LTIDPL), a joint venture of Larsen & Toubro Limited and Canada Pension Plan Investment Board (CPP Investments) holding 51 per cent and 49 per cent shares respectively.

Both L&T (51 per cent) and CPP Investments (49 per cent) stakes have been acquired by Epic Concesiones Private Limited, an investee company of Edelweiss Infrastructure Yield Plus Strategy, managed by Edelweiss Alternative Asset Advisors Limited (EAAA).

This deal is in line with L&T's strategy to exit non-core businesses for reducing its exposure to the asset heavy developmental projects portfolio thereby enhancing its Return on Equity, the company said.

Edelweiss Alternatives said the portfolio comprises seven (7) operating roads and one (1) power transmission asset in India, spanning 4,400 lane-kms and 960 ckms respectively.

With this acquisition, the infrastructure platform will scale up to 26 assets, comprising 5,000 lane-kms of roads, 1,800 ckms of power transmission assets and 813 MWp of renewables with cumulative annual revenue of Rs 3,000 cr. This acquisition is in line with the infrastructure yield strategy to generate regular distributions for investors by acquiring quality operating infrastructure assets with strong cash flows and unlocking value through active asset management.

Sreekumar Chatra, Managing Director - Infrastructure Yield Strategy, Edelweiss Alternatives, said, "This acquisition is a significant milestone for our business. These assets have a proven track record of revenues & operations, which are geographically dispersed and have long residual life. With our strong asset management and operating capabilities, we are confident of creating further value in the portfolio, and scale it up further."