Global investment firm KKR & Co. (KKR) has signed an agreement to acquire infrastructure investment fund Global Infrastructure Partners’ (GIP) entire stake in India-based road construction company Highway Concessions One (HC1) and seven highways spanning 487 kilometers.
HC1 manages GIP’s road portfolio across seven Indian states, including Telangana, Tamil Nadu, Rajasthan, Meghalaya, Madhya Pradesh, Karnataka, and Gujarat.
KKR aims to expand and strengthen India’s national highway network via the acquisition of HC1. (See KKR stock chart on TipRanks)
The company will make the acquisition via its KKR Asia Pacific Infrastructure Fund, and the deal will be KKR’s third investment in India and first in Asia’s transport sector.
The Indian Head of Infrastructure, and Managing Director of KKR, Hardik Shah, said, “Rapidly increasing passenger and commercial vehicle traffic has driven the strong demand to expand the country’s road network even further and the reciprocal need for investment in the sector. This is why the transportation sector is a key area of our infrastructure strategy in India.”
Two months ago, Evercore ISI analyst Glenn Schorr reiterated a Buy rating on the stock with a price target of $63 (5.4% upside potential).
Overall, the stock has a Moderate Buy consensus rating based on 8 Buys and 3 Holds. The average KKR price target of $64 implies 7% upside potential. The company’s shares have gained 89.3% over the past year.
According to TipRanks’ Smart Score rating system, KKR scores a 9 out of 10, suggesting that the stock is likely to outperform market averages.
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