HICL Infrastructure sells Highland Schools stake

HICL Infrastructure sells Highland Schools stake – HICL Infrastructure Company Limited has entered into an agreement to divest its 100% equity and subordinated debt interest in the Highland Schools PPP2 Project (“Highland Schools”) for GBP56.2m. The disposal is expected to complete during July 2018.

The Group sought and received offers for its interest in Highland Schools in March 2018. These were analysed by InfraRed and represented significantly greater value than could be achieved by retaining the investment. The disposal is accretive in terms of the total return, inflation correlation and weighted average asset life of the portfolio once the disposal has completed.

The profit on disposal, after costs, represents a premium of GBP9.7m over the Directors’ valuation of GBP46.5m as at 30 September 2017. HICL expects to redeploy the proceeds into accretive investments and the Company would consider further selective disposals as a means of managing its overall funding position.

Harry Seekings, Director, InfraRed Capital Partners Limited said: “The disposal of HICL’s investment in Highland Schools PPP2 is a tangible example of the Company’s business model in action. The Board and InfraRed seek opportunities to enhance value in the existing portfolio and this includes optimising portfolio performance through accretive disposals. Finding additional value for HICL shareholders is a priority for both the Board and InfraRed and, in this case, we have received an offer in excess of the value that could be achieved by retaining the investment within the portfolio. The profit generated supports the Directors’ approach to the valuation of HICL’s portfolio and the steadfast approach taken to enhancing shareholder value.”

HICL : HICL Infrastructure sells Highland Schools stake