11th Jun 2018 08:47
LONDON (Alliance News) - HICL Infrastructure Co Ltd said Monday it has agreed to acquire a further 7.2% interest in the A63 Motorway concession in France for EUR62 million from funds managed by DIF Infrastructure III and DIF Infrastructure IV.
The infrastructure investment company expects the deal to complete by the end of June. The project is a 40-year toll-road concession to design, upgrade, finance, operate and maintain a 104 kilometer section of the existing A63 between Salles and Saint-Geours-de-Maremne, in southwest France.
HICL acquired an initial 13.8% interest in the motorway project in January 2017 and, following the additional stake acquisition, it will own 21% total stake in the project.
The stake consideration is in line with the carrying value of HICL's existing investment in the project and will be funded from the proceeds of the disposal of the Highland Schools PPP2 Project, which was announced in April.
The additional stake acquisition is accretive to the existing portfolio, particularly in terms of total return and cashflow longevity, HICL said.
Shares in HICL were down 0.1% at 143.21 pence each on Monday morning.
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