3i Infrastructure sells stake in Alpha Schools at a premium

Jersey-incorporated, closed-ended investment company 3i Infrastructure has sold its 50 per cent holding in Alpha Schools (Highland) Holdings Limited to a wholly-owned subsidiary of HICL Infrastructure Company Limited, which already owns the balance of the investment.

Jersey-incorporated, closed-ended investment company 3i Infrastructure has sold its 50 per cent holding in Alpha Schools (Highland) Holdings Limited to a wholly-owned subsidiary of HICL Infrastructure Company Limited, which already owns the balance of the investment.

The sale of the company's investment in Alpha Schools, which was held through a subsidiary undertaking, generates gross proceeds of £21.2m, representing a premium to the company's most recent valuation for the investment of £19.4m, as at September 30th 2012.

Alpha Schools, a concession company under a PFI [Private Finance Initiative] contract to build, operate and maintain 11 new schools in Scotland, was part of the initial portfolio seeded into 3i Infrastructure at its IPO in 2007.

3i Infrastructure reported that it had owned Alpha Schools through its construction phase and had been realising value now that the asset is performing well in its operational phase.

The board said that it expected that the proceeds from the sale to be redeployed in the European infrastructure market.

3i Infrastructure is building a diversified portfolio of infrastructure investments across the globe, with a focus on Europe and India. As of September 30th 2012, 3i Infrastructure had a portfolio of 15 assets valued at £886m and net assets of £1.1bn.

3i Infrastructure's share price was down 0.08% to 131.10p at 08:59 on Monday.

MF

Recommended

Imperial Brands has an 8.3% yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% yield – but what’s the catch?

Tobacco company Imperial Brands boasts an impressive dividend yield, and the shares look cheap. But investors should beware, says Rupert Hargreaves. H…
20 May 2022
Investing in drugmakers: uncommon profits from curing rare diseases
Share tips

Investing in drugmakers: uncommon profits from curing rare diseases

Treatments for medical conditions with only a small number of sufferers can still be very attractive for pharmaceutical companies and investors becaus…
20 May 2022
Share tips of the week – 20 May
Share tips

Share tips of the week – 20 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
20 May 2022
Delivering profits: should you buy Royal Mail shares?
Share tips

Delivering profits: should you buy Royal Mail shares?

The volume of parcels delivered by Royal Mail soared during the pandemic, and so did its profits. But it has been coming under pressure lately. So, as…
19 May 2022

Most Popular

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
18 May 2022
Aviva: a share for income investors to tuck away
Share tips

Aviva: a share for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
18 May 2022
Inflation is now at its highest since 1982 – is this the peak?
Inflation

Inflation is now at its highest since 1982 – is this the peak?

At 9%, UK inflation is at its highest for 40 years – and it’s not going anywhere soon, says John Stepek. That means you need to be much more active a…
18 May 2022