International Public Partnership Ld Additional Investment in BeNEX Rail Company (7581U)
April 02 2019 - 2:01AM
UK Regulatory
TIDMINPP
RNS Number : 7581U
International Public Partnership Ld
02 April 2019
additional investment in benex rail company
2 April 2019
International Public Partnerships Limited ('the Company',
'INPP'), the listed infrastructure investment company, announces
that it has entered into a sale and purchase agreement to acquire a
further 51% shareholding in BeNEX GmbH ('BeNEX') from Hamburger
Hochbahn AG ('HHA'), the City of Hamburg's municipal public
transportation company.
The Company has agreed to invest up to approximately EUR54
million of which part will be subscribed immediately as additional
capital to BeNEX (which will be used primarily to reduce certain
debt which was linked to a requirement for HHA to be a continuing
shareholder) and the remainder will be used to acquire the
additional 51% shareholding. The transaction will therefore see
INPP's ownership increase from 49% to 100%. The payment to acquire
the shareholding will be deferred and is expected to be paid over
the period to 2026 and is expected to be funded by a return of
capital from BeNEX over the same period.
BeNEX both leases rolling stock and invests in train operating
companies ('ToCs') which operate rail services under concession
agreements with German federal states. When the Company acquired
its initial 49% stake in 2007, it formed a partnership with HHA to
assist in growing BeNEX's business to benefit from the reform that
was taking place in the German rail industry.
Since acquisition, BeNEX has been a successful investment for
INPP and it has seen continued growth. It has a highly experienced
management team that actively manages its fleets and operations. As
of 31 December 2018, it had 86 trains on lease to seven different
ToCs (six of which are fully or partly owned by BeNEX). Under the
joint ownership of HHA and INPP, the number of operating
concessions managed by BeNEX ToCs increased from eight to 12.
Key investment features include:
-- A federal state is the public-sector counterparty for each
individual train operating concession;
-- Concession agreements typically provide an indexed revenue
stream to adjust for operating cost increases over the term of the
concession;
-- BeNEX does not take risk on passenger numbers or fare
receipts on the majority of its concessions; and
-- BeNEX benefits from a strong and successful management team.
The Company's acquisition of the additional stake in BeNEX is
subject to a number of conditions precedent. These are expected to
be met over the next two months and financial close is anticipated
before the end of June 2019.
ENDS.
For further information:
Erica Sibree/Amy Joslin +44 (0)20 7939 0558/0587
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 20 3727 1046/1039
FTI Consulting
About International Public Partnerships (INPP):
International Public Partnerships ('INPP') is a listed
infrastructure investment company which invests in global public
infrastructure projects and businesses, which meets societal and
environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in 130 infrastructure
projects and businesses, including utility and transport
businesses, transmission projects, schools, courts and police
headquarters in the UK, Europe, Australia and North America. INPP
seeks to provide its shareholders with both a long-term yield and
capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser
to INPP and consists over 120 staff who are responsible for the
management of, advice on and origination of infrastructure
investments.
Visit the INPP website at
www.internationalpublicpartnerships.com for more information.
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END
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