Divestment of Sheffield BSF stake
22 September 2014
INPP divests its stake in Sheffield Building Schools for the Future project
International Public Partnerships Limited (INPP) is pleased to announce the disposal of its minority interests in the Sheffield Building Schools for the Future ('BSF') project.
The sale follows similar divestments of non-strategic minority stakes from the BSF portfolio earlier in the year. The Company is conducting the divestment on an opportunistic basis having received an unsolicited offer for the investment from HICL Infrastructure Company Limited ('HICL'), who currently hold a 40% stake in the project.
The effective 19% interest will be acquired for £3.2 million, which is in excess of the price paid by the Company on acquisition in August 2011 and offers a premium to the 8-9% internal rate of return ("IRR") target of the Company1. The ability to transact at these levels provides a continuing indication of the demand for assets in the secondary market.
INPP expects to re-invest the proceeds from the sale in the current pipeline of new infrastructure opportunities being developed by the Company and its investment adviser.
Chairman of INPP, Mr. Rupert Dorey, added: "The divestment of the Sheffield BSF interests once again demonstrates the value that the initial acquisition of the BSF Investment portfolio brought to the Company and level of demand for such assets in the secondary market. It also demonstrates the value of the Company's differentiated approach of self-originating assets in sectors in the infrastructure market that are less competitive."
[1] IRR target is based on the Initial Public Offer issue price of 100 pence per Ordinary Share and to be achieved over the long-term
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Nick Westlake/Hugh Jonathan +44 (0)20 7260 1345/1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 20 3727 1046/1039
FTI Consulting
Notes to Editors:
About International Public Partnerships (INPP):
International Public Partnerships (INPP) is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships (PPP), private finance initiative (PFI), regulated asset and other similar procurement methods.
Listed in 2006, INPP is a long-term investor in 115 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term 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 over 75 dedicated staff who manage, advise on and originate projects for INPP.
Visit the INPP website at www.internationalpublicpartnerships.com for more information.
This information is provided by RNS
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