HICL Infrastructure Company Ld Disposal of an investment (0622Z)
29 August 2018 - 4:01PM
UK Regulatory
TIDMHICL
RNS Number : 0622Z
HICL Infrastructure Company Ld
29 August 2018
29 August 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") is pleased to announce that the Group
has entered into an agreement to sell its 9.7% interest in the
AquaSure Desalination PPP Project ("AquaSure").
The value of the Group's investment in AquaSure was increased by
approximately 10% in September 2017, in line with a market
transaction earlier that year. The disposal price agreed will
generate a premium for the Group, of approximately 7% over the
AUD150m valuation of the investment at 31 March 2018. The
transaction is expected to complete during Q4 2018, subject to
third-party consents.
The disposal was initiated by InfraRed as part of the Group's
ongoing strategy of portfolio optimisation; delivering incremental
value to HICL's shareholders through strategic disposals, where
pricing is attractive. The forecast future returns from AquaSure
were appreciably lower than the overall weighted average total
return from the HICL portfolio and the disposal is therefore
expected to be accretive in terms of the total return. It will also
improve the correlation of portfolio returns to inflation; and
increase the weighted average asset life of the Group's
portfolio.
The Company intends to use the proceeds to reduce the balance on
its revolving credit facility ("RCF"). Following completion of the
disposal, drawings on the RCF are expected to be in the region of
GBP70m.
Harry Seekings, Director at InfraRed said:
"The accretive sale of HICL's investment in AquaSure at this
time, for an attractive price that takes advantage of favourable
market conditions, is right for the Company and its shareholders.
The Company is committed to the Australian market and continues to
seek opportunities for primary investments in Australia that are
accretive to the HICL portfolio.
"This disposal exemplifies HICL's strategy of portfolio
optimisation; and the achievement of a 7% premium over the most
recent valuation clearly demonstrates the emphasis placed by the
Board and InfraRed on enhancing shareholder value over the long
term."
-ends-
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Harry Seekings
Keith Pickard
Tulchan Communications +44 (0) 20 7353 4200
David Allchurch
Toby Bates
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 117 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 140 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 over
75 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.
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END
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