Additional Investment in BeNEX (3043Y)
December 21 2010 - 2:00AM
UK Regulatory
TIDMINPP
RNS Number : 3043Y
International Public Partnership Ld
21 December 2010
21 December 2010
International Public Partnerships Limited
Additional Investment in BeNEX
International Public Partnerships Limited ("INPP" or "the
Company") is pleased to advise it has made an additional investment
in its German rail operating business, BeNEX. BeNEX was established
in 2007 as a joint venture between Hamburger Hochbahn AG (51%), a
subsidiary of the German Federal State City of Hamburg, and INPP
(49%) to operate rail and bus concessions throughout Germany.
BeNEX has developed ahead of the Company's original projections
and seen substantial growth in its rail business. As a consequence
of that success and the number of new opportunities arising in the
German market particularly following the liberalisation of Deutsche
Bahn, BeNEX is seeking EUR15.3m of additional capital from its
shareholders, of which INPP is investing EUR7.5m (GBP6.4m). The
project will continue to be overseen by Amber's German asset
management executives, Dr. Juergen Bufka and Tim Schlicht.
Rail Market in Germany
The total German Local Public Rail Transport (LPRT) market
comprises approximately 630m rail kilometres. Due to the increasing
liberalisation process, approximately 35% of the market has now
been tendered and the market share of non-Deutsche Bahn companies
has grown steadily over the past ten years from 8.2% to 20.5% in
2010.
At the time of INPP's initial investment in 2007, BeNEX had
shares in four rail companies with 18.3m rail kilometres. BeNEX has
experienced successful growth and now has 22.3m rail kilometres in
operation or under preparation, well ahead of original forecasts.
BeNEX's rail operations now rank third amongst the non-Deutsche
Bahn operators in Germany (behind Veolia and Arriva Germany) with
17% of the total non-Deutsche Bahn market of approximately 130m
rail kilometres. This represents a market share of 3.5% in relation
to the total German LPRT market of 630m rail kilometres.
Future Opportunities
Based on published tender information, a minimum total volume of
approximately 230m rail kilometres will be tendered in the period
from 2011 to 2013. The upcoming opportunities include several large
concessions such as S-Bahn Frankfurt and S-Bahn Berlin, both with
more than 10m rail kilometres. In addition to the tender
opportunities, BeNEX potentially sees a number of acquisition
opportunities from existing rail operators.
Keith Dorrian, Chairman of the Company said: "BeNEX has been a
successful investment for INPP. It has developed ahead of original
projections and seen substantial growth in its rail business. This
faster than anticipated growth has led to the request for
additional capital to help meet the pipeline of opportunities BeNEX
anticipates and we are delighted to participate in the further
growth of this exciting business."
For further information:
Bianca Francis +44 (0)20 7939 0558
Amber Fund Management Limited
Nick Westlake/Hugh Jonathan +44 (0)20 7260 1345/1263
Numis Securities
Ed Gascoigne-Pees/Ed Berry +44 (0)20 7269 7132/7297 Financial
Dynamics
Notes to Editors:
About International Public Partnerships (INPP):
International Public Partnerships Limited (INPP) is a listed
infrastructure investment company which invests in global public
infrastructure projects developed under the public private
partnerships (PPP) and private finance initiative (PFI) procurement
methods.
Listed in 2006, INPP is a long-term investor in 55 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters and transport projects in the U.K.,
Europe, Australia and Canada. INPP seeks to provide its
shareholders with both a long-term government-backed yield and
capital growth through investment across both construction and
operational phases of 25-40 year concessions.
Amber Infrastructure Group (Amber) is the Investment Advisor to
INPP and consists of more than 50 dedicated infrastructure
specialists which originate and source a strong pipeline of
projects for INPP.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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