On 6th August 2024, the Competition Commission of India (CCI) has approved the following proposals:
Acquisition of 100% of share capital of ATC India by DIT:
CCI approved the acquisition of 100% of the share capital of ATC Telecom Infrastructure Private Limited (ATC India) by Data Infrastructure Trust (DIT) and certain inter-connected transactions.
Key Points:
i.DIT is an infrastructure investment trust registered under the Securities and Exchange Board of India/SEBI (Infrastructure Investment Trusts) Regulations, 2014.
- Through its Special Purpose Vehicles (SPVs), it provides passive telecom infrastructure services in India.
ii.ATC India is an indirect subsidiary of American Tower International, Inc. and provides passive telecom infrastructure services in India.
Restructuring of the existing business of Re Sustainability Limited
CCI approved the restructuring of Re Sustainability Limited (ReSL) business, its subsidiaries, and Joint Ventures(JV) through demerger of the Municipal Solid Waste (MSW) Business and Waste to Energy (WTE) business (Demerged Businesses) to Ramky Sustainability Solutions Private Limited (RSSPL), a newly incorporated entity.
Parties of the proposed combination:
i.ReSL– It operates in industrial waste management, municipal solid waste management, and other environmental services in India.
ii.Mumbai Waste Management Limited (MWML)– It is a wholly owned subsidiary of ReSL. It will merge with ReSL and cease to exist as an independent entity.
iii.RSSPL– It is a newly formed company that will hold the demerged businesses and mirror ReSL’s shareholding structure.
iv.Metropolis Investment Holdings Pte. Ltd. (Metropolis)– It is a Singapore-based investment company that will invest in RSSPL. It is registered as a Foreign Venture Capital Investor under the SEBI (Foreign Venture Capital Investor) Regulations, 2000, and managed by various subsidiaries of KKR & Co. Inc.
v.Founding Group– It comprises A. Ishaan (Ishaan), A. Ayodhya Rami Reddy, RK Ventures, A. Veeraraghavamma and A. Sharan. The members of the founding group hold shares in ReSL and are part of the Ramky group.
Points to note:
Following the restructuring, the fully diluted shareholding of RSSPL will mirror ReSL’s existing shareholding pattern in terms of the shareholding of Metropolis and the Founding Group, respectively.
The Founding Group will cede certain rights in the retained businesses of ReSL and Metropolis will cede certain rights in the Demerged Businesses under RSSPL.
Approves acquisition of 100% equity stake in 12 SPVs of PNC Infratech Limited & PNC Infra Holdings by Highway Infrastructure Trust
CCI has approved the acquisition of 100% equity, management and control stake in PNC Infratech Limited and PNC Infra Holdings’s 12 Special Purpose Vehicles (SPVs) by Highway Infrastructure Trust (Acquirer Trust).
Key Points:
i.Highway Infrastructure Trust is an infrastructure investment trust registered under SEBI regulations, 2014, and irrevocable trust settled under the Indian Trusts Act, 1882.
- Its SPVs, incorporated in India, are engaged in operating roads and highways in India under government concessions.
- Galaxy Investments II Pte. Limited is the sponsor and Highway Concessions One Private Limited (HC One) is its investment manager.
ii.The SPVs have entered into concession agreements with the National Highway Authority of India (NHAI) and Uttar Pradesh State Highways Authority (UPSHA) for infrastructure projects under Hybrid Annuity Model/Build-Operate-Transfer models respectively.
Approves acquisition by 360 Fund in VHFCL
CCI has approved acquisition by 360 ONE Private Equity Fund (360 Fund) in Vastu Housing Finance Corporation Limited (VHFCL).
Proposed Combination: 360 Fund has proposed to make a secondary purchase of equity shares in the VHFCL through its various schemes and affiliates.
Key Points:
i.360 ONE Private Equity Fund is a Category II Alternative Investment Fund registered with SEBI.
- The fund is managed by 360 ONE Alternates Asset Management Limited (360 AAML), a wholly owned subsidiary of 360 ONE WAM Limited (360 OWL).
ii.VHFCL provides loans and financial services to individuals and businesses in India.
- It’s wholly owned subsidiary, Vastu Finserve India Private Limited, provides loans and credit services to individuals and businesses.
Recent Related News:
i.CCI approved the acquisition of up to approximately 11% shareholding by South Korea Based Shinhan Bank Co., Ltd. in HDFC Credila Financial Services Limited (HDFC Credila) by way of subscription to shares of HDFC Credila.
ii.CCI approved the proposed combination involving the acquisition of IRB Infrastructure Trust (Private InvIT- Infrastructure Investment Trust) and MMK Toll Road Private Limited by Cintra.
About Competition Commission of India (CCI):
It was established in March 2009 by Government of India (GoI) under the Competition Act, 2002 for the administration, implementation, and enforcement of the Act.
Chairperson– Ravneet Kaur
Headquarters– New Delhi, Delhi
