BeNEX makes a further acquisition
bEnex acquires Abellio's regional rail operations in Germany
16 October 2024
International Public Partnerships Limited, the listed infrastructure investment company ('INPP' or the 'Company') is pleased to confirm that BeNEX, its portfolio company, has successfully completed the acquisition of Abellio's regional rail operations in Germany ('Abellio Germany').
BeNEX, which is wholly-owned by INPP, is an investor in both rolling stock and five train operating companies ('TOCs') which operate regional passenger rail services across Germany under contract with numerous German federal states. The vast majority of the revenues generated by BeNEX are availability-based with limited exposure to passenger numbers.
Abellio Germany principally comprises two TOCs generating largely availability-based revenues. The transaction, which sees BeNEX acquire 100% of Abellio Germany from the Dutch State Railway, will result in BeNEX having interests in seven TOCs and increasing its service volume from c.48 million train kilometres per year to c.65 million train kilometres per year from 2025.
The transaction results in BeNEX becoming one of the largest providers of local rail passenger transport in Germany, and further increases the Company's contribution to the decarbonisation of transport within Germany.
As previously reported, the projected economics of this c.£15 million investment into BeNEX are significantly more attractive, over the medium to long-term, relative to the economics of engaging in a share buyback[i].
The investment has been financed using proceeds from recent realisation activity. The Company's Corporate Debt Facility ('CDF') remains undrawn with c.£15 million long-standing investment commitments across the transport (Gold Coast Light Rail - Stage 3), education (Flinders University Health and Medical Research Building) and digital (toob) sectors. It is currently expected that the majority of these amounts will be invested over the period to 31 December 2025.
Mike Gerrard, Chair of International Public Partnerships said: "We are pleased to announce this acquisition, which strengthens our presence in Germany's transport sector. This transaction was considered more attractive than alternative capital allocation options. In addition, the acquisition further supports the Company's strategy to support the transition to net zero and deliver sustainable growth."
ENDS.
For further information:
Erica Sibree +44 (0) 7557 676 499
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 7703 330 199 / (0) 7807 296 032
FTI Consulting
About International Public Partnerships:
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meet societal and environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in over 140 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia, New Zealand and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth.
Amber is the Investment Adviser to INPP and consists of approximately 180 staff who are responsible for the management and origination of infrastructure investments.
[i] The projected long-term economics of a share buyback are calculated based on INPP's weighted average discount rate, less the ongoing charges ratio, adjusted to reflect the share price discount to the NAV using published sensitivities. As at 30 June 2024, the projected net return was 9.3% per annum.
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