HICL Infrastructure Company Limited (HICL) has announced the sale of its stake in the US Northwest Parkway toll-road project to VINCI Highways SAS for a net consideration of about US$232m, which is 30% higher than its latest valuation. The sale is part of HICL’s strategy to recycle capital from mature assets and invest in new opportunities.
HICL will use up to £50m of the sale proceeds to buy back its own shares, which are trading at a significant discount to their net asset value. The share buyback programme is expected to start soon and run for up to 12 months. The remaining proceeds will be used to reduce the debt on HICL’s revolving credit facility, which will have a balance of about £135m at the end of March 2024.
HICL is a London-listed infrastructure investment company that owns a portfolio of public-private partnership projects, regulated assets and renewable energy projects in the UK, Europe, North America and Australia. HICL is advised by InfraRed Capital Partners Limited, an independent infrastructure investment manager.