29th Aug 2018 09:03
LONDON (Alliance News) - HICL Infrastructure Co Ltd said on Wednesday it has agreed to sell its 9.7% holding in the AquaSure Desalination PPP project in Australia.
HICL said the sale of the stake in the public private partnership project will generate a 7% premium over the AUD150 million valuation of the investment as of the end of March.
The investment firm said the sale is part of its portfolio optimisation strategy, with forecast returns from the AquaSure investment lower than the average total return of its wider portfolio. It didn't name the buyer of the stake.
HICL will use the sale proceeds to reduce the balance of its revolving credit facility, with drawings expected to be around GBP70 million following the sale's completion.
Harry Seekings, a director at HICL's investment advisor InfraRed Capital Partners Ltd, commented: "The accretive sale of HICL's investment in AquaSure at this time, for an attractive price that takes advantage of favourable market conditions, is right for the company and its shareholders.
"The company is committed to the Australian market and continues to seek opportunities for primary investments in Australia that are accretive to the HICL portfolio."
Seekings added: "This disposal exemplifies HICL's strategy of portfolio optimisation; and the achievement of a 7% premium over the most recent valuation clearly demonstrates the emphasis placed by the board and InfraRed on enhancing shareholder value over the long term."
HICL shares were 0.2% higher early Wednesday at 159.20 pence each.
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