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.

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