11th Sep 2014 07:36
LONDON (Alliance News) - John Laing Infrastructure Fund Ltd Thursday said it plans to raise up to GBP50.0 million before costs through a placing of new shares, with the majority of the proceeds to go towards acquiring three public-private partnerships (PPPs) and private finance initiative projects from the John Laing Group and a stake in one of the projects from the John Laing Pension Trust.
In a statement, the FTSE 250 PPP infrastructure investment company said the new portfolio is being bought for about GBP39.0 million, a valuation it said is comparable with current valuations of similar projects in its existing portfolio.
The new portfolio is made up of a 50% stake in the South East London Police Stations project which comprises four South East London police stations; a 40% shareholding in the Groningen Tax Office project based in Holland; and the entirety of seven specialist mental healthcare facilities that constitute the North Birmingham Mental Health project.
"JLIF has grown consistently since its launch in November 2010. In that time, we have raised some GBP800.0 million of funds and invested in a portfolio of 52 low risk, high quality infrastructure assets, and the company has delivered a 38% share price total return for shareholders," Chairman Paul Lester said in a statement.
"These new projects are operationally mature, with minimal retained risk and stable cash flows, and match our appetite for low risk, high yielding assets, allowing us to continue to deliver a stable and secure income to our shareholders," Lester added.
The three projects are fully operational. JP Morgan Cazenove, the UK investment banking business of JP Morgan Securities PLC, is the placing's bookrunner.
JLIF said it will continue to assess potential acquisitions from the John Laing Group and other vendors. It expects to make further acquisitions.
JLIF said the exact number of shares to be placed and the price per share will be set at the end of the book build, which closes midday Friday.
JLIF shares were Thursday quoted down 0.8% at 117.10p.
By Samuel Agini; [email protected]; @samuelagini
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