Mubadala eyes exit from Cube Highways Trust; launches secondary sale

According to fresh market updates, Mubadala Investment Firm, an Abu Dhabi sovereign investor has rolled out a secondary sell-down in Cube Highways Trust, planning a complete exit from the publicly listed InvIT (infrastructure investment trust), people familiar with the matter told Moneycontrol.

“ It is a clean-out trade with the proposed sale of 3.35 per cent of outstanding units of Seventy Second Investment Firm LLC at a floor price of Rs 153 /unit which is a 0.66 per cent discount to the last closing price on September 28,” stated one of the persons above.

Seventy Second Investment Firm LLC is an affiliate of Mubadala Investment Firm. Moneycontrol has a reviewed a copy of the deal termsheet.

“ The total deal size is up to Rs 668 crore or $71.7 million and investment bank HSBC Securities is acting as the advisor . Mubadala is recycling capital in the listed platform. They keep be invested at the sponsor level and the development firm level” a second person further noted.

Both the persons above spoke to Moneycontrol on the condition of anonymity. Email queries have been sent to Mubadala and HSBC Securities but Moneycontrol could not elicit an immediate comment from both firms. This article will be updated as soon as we hear from both parties.

In July, Cube Highways Trust rolled out a Rs 5,000 crore initial public offer ( IPO), a transaction which marked the first successful conversion of a privately listed InvIT into a publicly listed InvIT in India.

Cube Highways Trust operates in the roads and highways sector and is engaged in implementing the public-private partnership model in the domestic highways sector, to operate and manage highways in association with the central and state governments. It operates a portfolio of 27 road assets spanning an aggregate length of 2,005 kilometers (8,754 lane kilometers) across 12 states and one union territory in India.