TIDM3IN
RNS Number : 3544B
3i Infrastructure PLC
30 January 2020
30 January 2020
3i Infrastructure plc - Q3 Performance update
Attractive realisations, on track to exceed total return
objective
3i Infrastructure plc ("3i Infrastructure" or the "Company") is
an investment company whose purpose is to deliver a long-term
sustainable return to shareholders from investing in
infrastructure. This statement relates to the period from 1 October
2019 to 31 December 2019 (the "period").
Highlights
Portfolio activity
-- Sale of Wireless Infrastructure Group ("WIG"), the
independent wireless infrastructure operator headquartered in the
UK, for proceeds of c.GBP387 million, realising a 27% IRR from this
investment.
-- Sale of the UK projects (the "UK Projects") agreed for
proceeds of c.GBP194 million, realising a 15% IRR for the
Company.
Financial update
-- The portfolio overall is performing in line with expectations
and is delivering a good level of income. Total portfolio income
and non-income cash was GBP44 million in the period. This compares
with GBP26 million of portfolio income and non-income cash received
in the same period last year.
-- Adjusting for the estimated proceeds from the realisations
announced in the period, the pro-forma September 2019 Net Asset
Value of the Company is estimated to have increased to 253.0 pence
per share, after payment of the interim dividend.
-- The Company is expected to exceed the total return objective
of 8% to 10% per annum over the medium term, for the current
financial year.
-- The Company is on track to deliver its dividend target for
the year ending 31 March 2020 of 9.20 pence per share. The full
year dividend is expected to be fully covered.
-- The Company's cash balance was GBP338 million at 31 December
2019 with the full Revolving Credit Facility of GBP300 million
available.
Commenting on today's announcement, Richard Laing, Chair of 3i
Infrastructure, said: "The excellent realisations of WIG and the UK
Projects further demonstrate the Company's track record of creating
significant value for our shareholders. We expect to exceed our
target return and achieve our dividend target for the year."
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Manager of the Company, added: "Our
recent divestments have delivered exceptional returns for our
shareholders. The portfolio overall continues to perform in line
with expectations and deliver a good level of income. We are
working on a broad range of potential investment opportunities,
seeking to invest in businesses that enhance the Company's
portfolio, while continuing to manage liquidity carefully."
Portfolio activity
On 19 December 2019, 3i Infrastructure completed the sale of its
93% stake in WIG to Brookfield Infrastructure for c.GBP387 million,
which compares to a valuation of GBP291 million at 30 September
2019. This investment achieved a 27% gross IRR and a 1.7x gross
money multiple for 3i Infrastructure. Approximately half of the
proceeds have been received, with a quarter payable unconditionally
in 12 months and a quarter payable unconditionally in 24
months.
On 6 December 2019, following a strategic review of its projects
portfolio, 3i Infrastructure agreed to sell the UK Projects, all of
which are now operational. The UK Projects being sold comprise
stakes in Ayrshire College, Elgin (a vehicle holding 16 project
investments), Mersey Gateway Bridge, Octagon Hospital, the West of
Duddon Sands offshore transmission owner project and an interest in
the Dalmore Capital Fund. These sales have now completed, except
for Mersey Gateway Bridge which we expect to complete by the end of
the financial year.
The proposed tax on waste imports to the Netherlands,
highlighted in the Half-yearly report, was passed by the Dutch
Parliament and Senate and has taken effect from 1 January 2020.
Attero expects that the immediate impact of the tax on Attero's
revenues will be limited, as waste customers absorb a material part
of the tax. The portfolio valuation exercise to be carried out as
at 31 March 2020 will take these developments into account.
Portfolio returns
Following the realisations of the Company's stakes in WIG and
the UK Projects, the pro-forma September NAV of the Company has
increased to an estimated 253.0 pence per share. This is a 5.9%
increase from the previously announced 30 September ex-dividend NAV
of 239.0 pence per share. This pro-forma September NAV adjusts the
announced September NAV for the estimated realisation proceeds as
announced in the period, less a performance fee that would have
accrued at this higher NAV (as the performance hurdle for the year
would have been exceeded). No other changes since 30 September have
been taken into account in this NAV estimate. A full portfolio
valuation exercise will be carried out as at 31 March 2020.
The portfolio overall has performed in line with expectations
and is delivering a good level of income. Total portfolio income
and non-income cash was GBP44 million in the period, comprising
portfolio income of GBP38 million and non-income cash of GBP6
million. This compares with GBP26 million of income and GBP0.1
million of non-income cash received in the same period last
year.
Balance sheet
At 31 December 2019, the Company's cash balance was GBP338
million with the full Revolving Credit Facility of GBP300 million
undrawn and available to fund potential new investment
opportunities.
In January 2020, a further GBP99 million was received from the
UK Projects realisations.
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, 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 October
2019 to 31 December 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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