Acquisition

RNS Number : 7443U

HSBC Infrastructure Company Limited

21 October 2010

 



21 October 2010

HSBC Infrastructure Company Limited

Acquisitions of additional stakes in the Oxford John Radcliffe Hospital PFI project and completion of acquisition of additional stakes in the Queen Alexandra Hospital PFI project, for combined consideration of £27.3 million

HSBC Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, announces today that the Group has completed the acquisition of an additional investment in the Oxford John Radcliffe Hospital PFI project ('OJR').

The Group has acquired a further 39.9% equity interest and 50% loan note interest in OJR, for a total consideration of £13.9 million.

The Company also announces today that the conditional contract announced on 18 October 2010, to acquire a further 15.0% equity interest and 25.1% loan note interest in the Queen Alexandra Hospital for £13.4 million, has now completed.

This increases the Group's equity interests in each of these projects to 89.9% and its loan note interests to 100%. Total consideration for all of these interests is £27.3 million, which was funded from the Group's existing debt facility. 

The price agreed for the incremental investments is comparable to the valuation of the Company's existing investments in these projects. These acquisitions bring to 19 the number of incremental acquisitions undertaken by the Company since launch.

Werner von Guionneau, Director, HSBC Specialist Fund Management Limited, the Company's Investment Adviser, said:

"These acquisitions support the Company's strategy of acquiring incremental investments from shareholders who wish to sell down their interests."

The team has secured a number of acquisitions in recent months, and continues to appraise suitable investment opportunities. We expect to secure further acquisitions for the Group in due course."

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M:Communications	[phone]
Ed Orlebar Andrew Benbow
HSBC Specialist Fund Management Limited	[phone]
Werner von Guionneau Tony Roper Keith Pickard Sandra Lowe

HSBC Infrastructure Company Limited

The Company is a long term investor in infrastructure projects which are predominantly in their operating phase and yielding steady returns. Once the acquisitions announced on 7 October are completed, the Company will own a portfolio of 38 infrastructure projects of which 35 will be operational.

The Company is seeking further suitable investment opportunities in line with its strategy set out most recently in the Company's results announced on 25 May 2010, and its Investor Update RNS of 23 September 2010.

Further details of the Company can be found on its website www.hicl.hsbc.com.

Investment Adviser

The Investment Adviser to the Company is HSBC Specialist Fund Management Limited, the infrastructure investment team of which has successfully invested in infrastructure projects since 1997 and which is part of HSBC Specialist Investments, the infrastructure and real estate investment arm of the HSBC Group.  It was announced on 4 June 2010 that heads of terms had been agreed with HSBC for the business to become an affiliate of HSBC (from its current status of a 100% owned subsidiary). HSBC Specialist Fund Management Limited is authorised and regulated by the Financial Services Authority.

 

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