22nd Jun 2016 14:36
LONDON (Alliance News) - John Laing Infrastructure Fund Ltd on Wednesday said it has entered into an agreement with Equitix to sell its entire 50% interest in the Newham Hospital PPP project and its entire 40% interest in the Barnsley BSF project, for GBP43.3 million.
John Laing said the decision to divest was taken following the recent sale of holdings in both projects to Equitix by a co-shareholder. Those disposals provided John Laing with potential realisation values for its own interests, which it considered to be significantly ahead of the value that could be achieved for its shareholders either by acquiring the interests being sold by the co-shareholder or by retaining its own interests.
John Laing said the sale proceeds represent an uplift in the carrying value of the investments at March 31 of around 36% and result in a realised internal rate of return of around 16%.
GBP16.9 million of the proceeds will be used to repay amounts currently drawn under the revolving credit facility with the balance used to part fund the impending completion of recent acquisitions.
"Following receipt of very attractive offers for both stakes, the board concluded that it was in the best interests of JLIF shareholders to sell its holdings. This decision was reinforced by the strong pipeline of investment opportunities available to JLIF at present and its confidence of being able to re-invest and re-deploy this capital more effectively and at better value for our shareholders," Investment Adviser Andrew Charlesworth said in a statement.
Shares in John Laing were trading up 0.4% at 124.65 pence on Wednesday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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