HICL Infrastructure Company Ld Disposal of an investment (4687M)
30 April 2018 - 4:00PM
UK Regulatory
TIDMHICL
RNS Number : 4687M
HICL Infrastructure Company Ld
30 April 2018
30 April 2018
HICL Infrastructure Company Limited
Disposal of an investment
HICL Infrastructure Company Limited ("HICL" or the "Company",
and together with its subsidiaries the "Group"), the listed
infrastructure investment company advised by InfraRed Capital
Partners Limited ("InfraRed"), announces that the Group has entered
into an agreement to divest its 100% equity and subordinated debt
interest in the Highland Schools PPP2 Project ("Highland Schools")
for GBP56.2m. The disposal is expected to complete during July
2018.
The Group sought and received offers for its interest in
Highland Schools in March 2018. These were analysed by InfraRed and
represented significantly greater value than could be achieved by
retaining the investment. The disposal is accretive in terms of the
total return, inflation correlation and weighted average asset life
of the portfolio once the disposal has completed.
The profit on disposal, after costs, represents a premium of
GBP9.7m over the Directors' valuation of GBP46.5m as at 30
September 2017. HICL expects to redeploy the proceeds into
accretive investments and the Company would consider further
selective disposals as a means of managing its overall funding
position.
Harry Seekings, Director, InfraRed Capital Partners Limited
said:
"The disposal of HICL's investment in Highland Schools PPP2 is a
tangible example of the Company's business model in action. The
Board and InfraRed seek opportunities to enhance value in the
existing portfolio and this includes optimising portfolio
performance through accretive disposals.
"Finding additional value for HICL shareholders is a priority
for both the Board and InfraRed and, in this case, we have received
an offer in excess of the value that could be achieved by retaining
the investment within the portfolio. The profit generated supports
the Directors' approach to the valuation of HICL's portfolio and
the steadfast approach taken to enhancing shareholder value."
-ends-
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Harry Seekings
Keith Pickard
Tulchan Communications +44 (0) 20 7353 4200
Latika Shah
Canaccord Genuity Limited +44 (0) 20 7523 8000
David Yovichic
HICL Infrastructure Company Limited
HICL Infrastructure Company Limited ("HICL" or the "Company",
and together with its subsidiaries the "HICL Group") is a long-term
investor in infrastructure assets which are predominantly
operational and yielding steady returns. It was the first
infrastructure investment company to be listed on the London Stock
Exchange.
With a current portfolio of 119 infrastructure investments, HICL
is seeking further suitable opportunities, which are positioned at
the lower end of the risk spectrum, in three target markets
segments: PPP projects; regulated assets; and demand-based
assets.
Further details can be found on the HICL website
www.hicl.com.
Investment Adviser (InfraRed Capital Partners)
The Investment Adviser to HICL is InfraRed Capital Partners
Limited ("InfraRed") which has successfully invested in over 200
infrastructure projects since 1997. InfraRed is a leading
international investment manager focused on infrastructure and real
estate. It operates worldwide from offices in London, Hong Kong,
New York, Seoul and Sydney. With over 130 professionals it manages
in excess of US$10bn of equity capital in multiple private and
listed funds, primarily for institutional investors across the
globe. InfraRed is authorised and regulated by the Financial
Conduct Authority.
The infrastructure investment team at InfraRed consists of
approximately 70 investment professionals, all with an
infrastructure investment background and a broad range of relevant
skills, including private equity, structured finance, construction,
renewable energy and facilities management.
InfraRed implements best-in-class practices to underpin asset
management and investment decisions, promotes ethical behaviour and
has established community engagement initiatives to support good
causes in the wider community. InfraRed is a signatory of the
Principles of Responsible Investment.
Further details can be found on InfraRed's website
www.ircp.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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