SEW Infrastructure is selling a majority stake in SEW Navayuga Barwani Tollways (SNBTPL), a special-purpose vehicle which constructed a major four-lane highway project in India on a build, operate and transfer (BOT) basis.

SEW Infra noted that it has signed a definitive agreement to divest the stake to Uniquest Infra Ventures Private. However, it did not reveal the stake quantity nor the value of the transaction.

SNBTPL is a joint venture company between SEW Infra and Navayuga Engineering Co. Ltd (NECL), with both the companies holding 74% and 16% stake respectively.

"We are glad to announce the signing of this agreement with Uniquest Infra Ventures Private Limited."

The Rs7.9bn ($128.99m) project involved the construction of a four-lane highway from Khalghat to Madhya Pradesh-Maharashtra border on NH-3.

It included 83km of highway development and a 768m-long major bridge across the river.

The project was awarded by the National Highways Authority of India (NHAI) and operations started in April 2011.

SNBTPL is operating the highway under a concession agreement signed with the NHAI for a period of 18 years.

SEW Infrastructure director S Anil Kumar said: "We are glad to announce the signing of this agreement with Uniquest Infra Ventures Private Limited. The proceeds of the divestment would assist in improving the liquidity and strengthen the overall financial position of the company."

SEW, which reported revenues of Rs25.56bn ($417.34m), is struggling with a total debt of Rs9.59bn ($156.58m), reported Business-standard.com.

Uniquest is a joint venture between UEM group, the investment arm of Malaysian government, and IDFC.