HICL Infrastructure Company has agreed to purchase additional equity and loan note interests in the Highlands Schools private finance initiative (PFI) project from a subsidiary of 3i Infrastructure.
The transaction takes HICL's total interests in the 30-year project, which runs until 2037, to 100%.
The sale price of £21.2m represents a premium to 3i's most recent valuation for the investment of £19.4m. HICL said the valuation is in line with the current valuation of similar UK PFI projects in the group's portfolio.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Highland Schools PFI project is a 30-year concession with the Highland Council in Scotland to design, build and operate eleven urban and rural schools with a total capital value of £143m.
The acquisition was funded from the group's debt facility and takes the group's funding requirement to £78.7m, including the conditional investments announced on February 26th in conjunction with the placing, open offer and offer for subscription of new ordinary shares.
"The acquisition builds on the group's strategy of increasing its shareholdings in existing infrastructure investments," it said.
3i said it expects the proceeds from the sale will be redeployed in the European infrastructure market.
NR
-
Why undersea cables are under threat – and how to protect themUndersea cables power the internet and are vital to modern economies. They are now vulnerable
-
Vanguard to bring in £4 minimum monthly fee - is it still a cheap deal?Vanguard is overhauling its charges, with DIY investors set to pay more from January. How will the fees compare to its rivals, and what should customers do?
