HICL Infrastructure adds to A63 stake – Incremental Acquisition
HICL Infrastructure Company Limited has agreed to acquire a further 7.2% interest in the A63 Motorway concession in France for EUR62m from funds managed by DIF Infrastructure III and DIF Infrastructure IV. The acquisition is not subject to any further conditions and will complete by the end of this month.
The Project is a 40-year toll-road concession to design, upgrade, finance, operate and maintain a 104km section of the existing A63 between Salles and Saint-Geours-de-Maremne, in southwest France. Financial close occurred in 2010 and the upgraded road opened in 2013. HICL acquired an initial 13.8% interest in the Project in January 2017 and, with completion of this incremental investment, will hold a 21% interest in the Project.
The consideration is in line with the carrying value of HICL’s existing investment in the Project as at 31 March 2018. It will be funded from the proceeds of the disposal of the Highland Schools PPP2 Project, which was announced in April 2018. The acquisition exemplifies an ongoing strategy of portfolio optimisation for the Company. It is accretive to the existing portfolio, particularly in terms of total return and cashflow longevity
HICL : HICL Infrastructure adds to A63 stake