3rd Feb 2016 08:48
LONDON (Alliance News) - HICL Infrastructure Co Ltd on Wednesday said it has agreed to pay up to EUR87.0 million for a 13.8% interest in the A63 motorway project in France.
The listed infrastructure investment company, which is advised by InfraRed Capital Partners Ltd, said the acquisition is subject to a number of conditions and is expected to complete in early 2017. The expected completion date means HICL's net funding requirement of about GBP7.0 million remains unchanged.
The deal was made with Colas Sud Ouest and Spie Batignolles. The project is a 40-year toll-road concession to design, build, finance, operate and maintain an upgraded 104 kilometre section of the A63 highway between Salles and Saint-Geours-de-Maremne, in southwest France.
"Having reviewed a number of toll-road opportunities in recent years, we are very pleased to have signed the agreement to acquire an interest in the A63 motorway project in France. It has performed well since financial close, with construction completion ahead of schedule and revenues in line with forecasts. With a 35-year concession life remaining, strong inflation-linkage and a successful refinancing in 2015 that secured long-term funding, the project is well-placed to deliver attractive returns," Tony Roper, director, InfraRed Capital Partners, said.
Shares in HICL were down 0.3% at 151.20 pence on Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
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