23rd Sep 2021 10:16
(Alliance News) - 3i Infrastructure PLC on Thursday said it has agreed to sell stakes in four of its five liquid storage terminals, resulting in a 10 pence-per-share uplift to its net asset value.
Shares were up 1.9% to 320.82p in London on Thursday morning from the 315.00p closing price on Wednesday.
The infrastructure investor will sell its 45% stakes in terminals in Amsterdam, Ghent, Malta and Terneuzen in the Netherlands. The buyer, Evos Finance BV, also will buy out the majority owner of the terminals, Oiltanking GmbH. 3i Infrastructure will continue to own 45% of a terminal in Singapore.
None of the parties in the deal disclosed the price. 3i Infrastructure did say that the sale price implies a EUR110 million increase to its own net asset value, or 10p per share. The five liquid storage terminals were worth GBP157 million in the most recent valuation on March 31.
3i Infrastructure had announced a strategic review of the unit on July 22.
The sale is conditional on "certain third party consents" and is expected to complete in the fourth quarter of 2021. The proceeds will be used to repay the unit's debt and related break costs - after which the balance remaining will be no more than EUR50 million, 3i Infrastructure said.
"3i Infrastructure was a pioneer among infrastructure investors into the liquids storage sector 14 years ago...Now is an appropriate time for the four European terminals to move to new ownership, well-placed to support them into the future," Chair Richard Laing said.
By Ivan Edwards; [email protected]
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