International Public Partnership Ld Additional Investment Commitment in Cadent Gas (6982M)
01 May 2018 - 4:04PM
UK Regulatory
TIDMINPP
RNS Number : 6982M
International Public Partnership Ld
01 May 2018
AGREEMENT TO MAKE ADDITIONAL c.GBP35-40M INVESTMENT COMMITMENT
IN CADENT GAS DISTRIBUTION NETWORK
1 May 2018
International Public Partnerships Limited ('the Company',
'INPP'), the listed infrastructure investment company, advises that
it has agreed to acquire an additional interest in the Cadent gas
distribution network.
In March 2017, the Company announced that the Quadgas consortium
of which INPP is part had acquired a 61% interest in National
Grid's gas distribution networks ('GDN'). The Company made an
investment of GBP274 million for a 4.4% interest in the Consortium.
At the same time the Company announced that additional to the 61%
interest acquired by the Consortium, a further 14% interest in the
networks has also been negotiated with National Grid and was
subject to put and call options between National Grid and the
Consortium. In addition, the Consortium had pre-emption
arrangements over the residual 25% investment that National Grid
was expected to continue to hold after exercise of these
options.
This latest investment arises as part of the Quadgas consortium
having entered into a second put and call option agreement
providing for National Grid to dispose of its remaining 25% holding
in Cadent and for the consortium to acquire 100% ownership of that
business.
In aggregate on conclusion of these arrangements the Company
will hold a 7.25% ownership interest in Cadent giving it the
permanent right to appoint a board director. This has been the
Company's long term target level of shareholding in the Cadent
business.
The Company's third and final investment commitment is expected
to be between GBP35m-GBP40m investment and, as with the previous
option entered in March last year, will be exercisable in 2019. The
pricing for this further acquisition has not been disclosed on
account of there being a number of factors feeding into the final
price but the Company confirms that this further investment is
forecast to be accretive to the Company's current portfolio in
terms of discount rate, yield contribution and inflation
indexation.
ENDS.
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 20 3727 1046/1039
FTI Consulting
About International Public Partnerships (INPP):
International Public Partnerships ('INPP') is a listed
infrastructure investment company which invests in global public
infrastructure projects developed under the public private
partnerships ('PPP'), private finance initiative ('PFI'), regulated
asset and other similar procurement methods.
Listed in 2006, INPP is a long-term investor in 129 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters, transport and utility and transmission
projects in the UK, Europe, Australia and North America. INPP seeks
to provide its shareholders with both a long-term yield and capital
growth through investment across both construction and operational
phases typically of 25-40 year concessions.
Amber Infrastructure Group ('Amber') is the Investment Adviser
to INPP and consists over 100 dedicated staff who manage, advise on
and originate investments for INPP.
Visit the INPP website at
www.internationalpublicpartnerships.com for more information.
Important information
This announcement contains information that is inside
information for the purposes of the Market Abuse Regulation (EU)
No. 596/2014.
This announcement is an advertisement. It does not constitute a
prospectus relating to the Company and does not constitute, or form
part of, any offer or invitation to sell or issue, or any
solicitation of any offer to purchase or subscribe for, any shares
in the Company in any jurisdiction nor shall it, or any part of it,
or the fact of its distribution, form the basis of, or be relied on
in connection with or act as any inducement to enter into, any
contract therefor.
Forward-looking statements are subject to risks and
uncertainties and accordingly the Company's actual future financial
results and operational performance may differ materially from the
results and performance expressed in, or implied by, the
statements. These forward-looking statements speak only as at the
date of this announcement. The Company, Amber and Numis Securities
expressly disclaim any obligation or undertaking to update or
revise any forward-looking statements contained herein to reflect
actual results or any change in the assumptions, conditions or
circumstances on which any such statements are based unless
required to do so by the Financial Services and Markets Act 2000,
the Prospectus Rules of the Financial Conduct Authority or other
applicable laws, regulations or rules.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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