TIDM3IN
RNS Number : 0322O
3i Infrastructure PLC
30 September 2019
30 September 2019
3i Infrastructure plc - Pre-close update
Portfolio performance in line with expectations, on track to
meet targets
3i Infrastructure plc ("3i Infrastructure" or the "Company") is
a long-term investor in infrastructure businesses and assets. This
statement relates to the period from 1 April 2019 to 27 September
2019 (the "period").
Highlights
Investment activity
-- Completion of the c.EUR210 million acquisition of c.95% of
Ionisos, alongside management. Ionisos is a leading owner and
operator of cold sterilisation facilities servicing the medical,
pharmaceutical and cosmetic industries.
Portfolio activity
-- The portfolio overall continues to perform in line with expectations.
-- Our newest investment, Joulz, has performed ahead of our
expectations in the first few months since acquisition.
-- Valorem has completed the bolt-on acquisition of Force
Hydraulique Antillaise SAS ("FHA") and continues to perform well,
growing its installed capacity of wind and solar projects at a
faster pace than assumed in our investment case.
-- Softer demand for capacity experienced by Oystercatcher is
persisting longer than we had expected. In line with industry
peers, Attero faces some uncertainty relating to a proposed tax on
waste imports to the Netherlands, which is expected to be debated
in the Dutch parliament later in the calendar year.
Financial update
-- The portfolio continues to deliver a good level of income.
Total portfolio income and non-income cash was GBP57 million in the
period.
-- The Company is on track to deliver its dividend target for
the year ending 31 March 2020 of 9.20 pence per share.
-- The Company's cash balance was GBP17 million at 27 September
2019 with a drawn balance on its Revolving Credit Facility ("RCF")
of GBP192 million, leaving GBP108 million undrawn.
Commenting on today's announcement, Richard Laing, Chair of 3i
Infrastructure, said: "Building on a strong performance in recent
years, the Company has made a good start to the year, delivering a
total shareholder return for the period of 8%. We are on track to
meet our target return and dividend target for the year."
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Manager of the Company, added: "The
portfolio continues to perform in line with expectations overall
and deliver a good level of income. We are very pleased to have
completed the acquisition of Ionisos, which further diversifies the
portfolio, and we continue to develop an attractive pipeline of
investment opportunities."
Portfolio activity
On 25 September 2019, 3i Infrastructure invested c.EUR210
million to acquire c.95% of Ionisos, alongside management. Ionisos
is a leading owner and operator of cold sterilisation facilities
servicing the medical, pharmaceutical and cosmetics industries.
Headquartered in Civrieux, France, Ionisos is the third largest
cold sterilisation provider globally and operates a network of
facilities in Europe with market leading positions in France and
Spain. It has a highly diversified customer base of more than 1,000
customers and delivers a mission-critical service for its customers
for whom cold sterilisation is an essential component of the
manufacturing process. Demand for sterilisation is driven by
attractive market fundamentals and non-cyclical market factors,
including an ageing population in Western Europe, growing demand
for medical services increasingly relying on single use products
that would be damaged by the heat and/or humidity of hot
sterilisation methods, and increasingly stringent regulation
governing the sterilisation of medical, pharmaceutical and
cosmetics products.
In July 2019, following a competitive process, Tampnet was
awarded a contract for building and operating a 5G LTE network on
two platforms offshore Newfoundland, Canada. Magnus Mandersson has
been appointed Chairman of Tampnet. Magnus has 25 years of
experience in the global telecommunications sector.
Valorem completed the acquisition of a 51% stake in FHA, the
leading developer and operator of hydro power plants in the French
Caribbean islands, alongside its founder Raphael Gros. The
transaction was funded by Valorem's balance sheet and external
debt.
Mel Kroon has been appointed Chairman of Attero. Mel was
Chairman of TenneT Holding. Richard Lewis has been appointed to the
Infinis board as an additional non-executive director. Richard has
extensive experience in the energy sector.
Portfolio returns
The portfolio overall continues to perform in line with
expectations and is delivering a good level of income. Total
portfolio income and non-income cash was GBP57 million in the
period, comprising portfolio income of GBP51 million and non-income
cash of GBP6 million. This compares with GBP46 million of portfolio
income and GBP86 million of non-income cash (the majority of which
consisted of one-off refinancing gains) received in the same period
last year.
As usual, an important element of the determination of the
Company's results for the half-year to 30 September 2019 will be
the valuation exercise carried out on the investment portfolio at
that date. 3i Infrastructure expects to announce its results for
the half-year to 30 September 2019 on 7 November 2019.
Balance sheet
The cash balance was GBP17 million at 27 September 2019, and the
drawn balance on the RCF was GBP192 million following the
completion of the investment in Ionisos.
The undrawn RCF balance of GBP108 million provides liquidity for
new investments and could be supplemented by the GBP200 million
accordion feature if required.
Ends
For information, please contact:
Richard Laing Chair, 3i Infrastructure plc +44 1534 847 410
Thomas Fodor Shareholder enquiries +44 20 7975 3469
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Kathryn van der
Kroft Media enquiries +44 20 7975 3021
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About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, an approved UK Investment Trust, listed on the
London Stock Exchange and regulated by the Jersey Financial
Services Commission. The Company is a long-term investor in
infrastructure businesses and assets. The Company's market focus is
on economic infrastructure and greenfield projects in developed
economies, principally in Europe, investing in operating businesses
and projects which generate long-term yield and capital growth.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and acts as Investment Manager to 3i Infrastructure
plc.
This press release is not for distribution (directly or
indirectly) in or to the United States, Canada, Australia or Japan
and is not an offer of securities for sale in or into the United
States, Canada, Australia or Japan. Securities may not be offered
or sold in the United States absent registration under the U.S.
Securities Act of 1933, as amended (the "Securities Act"), or an
exemption from registration under the Securities Act. Any public
offering to be made in the United States will be made by means of a
prospectus that may be obtained from the issuer
or selling security holder and will contain detailed information
about 3i Group plc, 3i Infrastructure plc, 3i India Infrastructure
Fund and management, as applicable, as well as financial
statements. No public offering in the United States is currently
contemplated.
This statement aims to give an indication of material events and
transactions that have taken place in the period from 1 April 2019
to 27 September 2019 and their impact on the financial position of
3i Infrastructure plc. These indications reflect the Board's
current view. They are subject to a number of risks and
uncertainties and could change. Factors which could cause or
contribute to such differences include, but are not limited to,
general economic and market conditions and specific factors
affecting the financial prospects or performance of individual
investments within the portfolio of 3i Infrastructure plc.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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