LONDON, UK: HICL Infrastructure Company Limited (HICL) has agreed to dispose of 30% of its equity interests in the US Northwest Parkway toll-road project (NWP) for a consideration of approximately USD 86 million.
The proceeds from the sale are higher than the company’s pro-rata asset valuation in March 2022.
The transaction is expected to be completed in June, subject to customary closing conditions. Upon completion, HICL will retain a 23.3% equity interest and its governance rights at the asset level board.
HICL invested in NWP in December 2016, and the sale price represents an 11.0% holding period IRR and a 1.8x multiple on the pro-rata cash invested. This transaction is expected to enhance HICL’s track record of achieving capital growth through selective and disciplined asset realisations, which is a key pillar of the company’s growth and funding strategy.
The proceeds from the sale will be reinvested in the company’s investment in French fibre-to-the-home platform Altitude Infra, which was announced earlier this month.
Edward Hunt, the Head of Core Income Funds at InfraRed, stated that active capital recycling remains a crucial lever to optimize HICL’s portfolio construction, providing a valuable source of funding beyond capital markets that compounds returns for shareholders and drives NAV outperformance.
HICL has also completed the previously announced acquisition of an equity interest in Texas Nevada Transmission LLC, a US electricity transmission asset, following the receipt of regulatory approvals and customary third-party consents.
HICL Infrastructure PLC (HICL) is a long-term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange.
With a current portfolio of over 100 infrastructure investments, HICL is seeking further suitable opportunities in core infrastructure, which are inherently positioned at the lower end of the risk spectrum.
HICL to acquire minority interest in French fibre-to-the-home platform, Altitude Infra