John Laing Infrastructure sells stakes in two projects

John Laing Infrastructure has announced that it has entered into an agreement with Equitix to sell its entire 50% equity and sub-ordinated debt interest in the Newham Hospital PPP project and its entire 40% equity and sub-ordinated debt interest in the Barnsley BSF project, for a combined consideration of GBP43.3 million.

The decision to divest was taken following the recent sale of holdings in both projects to Equitix by a co-shareholder. Both co-shareholder disposals were undertaken by way of a competitive tender process and provided potential realisation values for JLIF’s interest in each project. The Board considered the valuations to be significantly ahead of the value that could be achieved for JLIF shareholders either by acquiring the interests being sold by the co-shareholder, or by retaining JLIF’s interest.

The aggregate gross sale proceeds of GBP43.3 million represent an uplift on the carrying value of the investments at 31 March 2016 of approximately 36% and result in an aggregate realised IRR from the investments of approximately 16%. The disposals have completed and 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 recently announced acquisitions. The Board will continue to consider and evaluate potential disposals which are in the best interest of shareholders.

JLIF : John Laing Infrastructure sells stakes in two projects