3i Infrastructure has announced an agreement to sell its stake in Eversholt Rail Group, to CK Investments S.A R.L., generating net proceeds of £358m. At 48.7%, this is a significant uplift on the 30 September 2014 valuation of £240.8m. The transaction is expected to close in March 2015.
Eversholt is one of three leading rail stock companies in the UK and owns c 28% of the current UK passenger train fleet. It has 19 passenger fleets, leased to 11 train operating companies, that are predominantly weighted towards electric trains. It also owns a fleet of freight locomotives.
3i Infrastructure’s co-investors, Morgan Stanley Infrastructure Partners and STAR Capital Partners, have all agreed to sell their positions as part of the deal, which places an enterprise valuation of Eversholt of c £2.5 billion. 3i Infrastructure has said their decision to sell reflects a view that the transaction offers the opportunity to generate significant additional value for shareholders relative to their assessment of the ongoing potential of the business. However, they reportedly have a decent pipeline of investment opportunities and expect to be bidding on a number of potential core opportunities over the coming months.