TIDM3IN
RNS Number : 4025U
3i Infrastructure PLC
29 March 2019
29 March 2019
3i Infrastructure plc - Pre-close update
3i Infrastructure plc ('3i Infrastructure' or 'the Company')
announces its performance update as it enters the close period for
the year ending 31 March 2019. The data in this statement relates
to the period from 1 October 2018 to 28 March 2019 (the
'period').
Highlights
-- Completion of the sale of Cross London Trains ('XLT') for proceeds of GBP333 million
-- Completion of the EUR226 million investment in Tampnet AS ('Tampnet')
-- Commitment to acquire 100% of Joulz Diensten B.V. ('Joulz') for approximately EUR220 million
-- Wireless Infrastructure Group ('WIG') acquired Highpoint
Communications Limited ('Highpoint') in Ireland and Arqiva's Indoor
Networks business in the UK
-- TCR completed the bolt-on acquisition of Aerolima SAS ('Aerolima')
-- The Company's portfolio overall continues to perform well
-- Total income and non-income cash was GBP69 million in the
period. The Company remains on track to deliver its full year
dividend target of 8.65 pence per share, which will be fully
covered with a significant surplus
-- The Company's cash balance was GBP262 million at 28 March
2019, and the undrawn balance of its Revolving Credit Facility
('RCF') was GBP284 million
Richard Laing, Chair of 3i Infrastructure plc, said: "3i
Infrastructure continues to outperform its objectives and remains
on track to deliver a full year dividend of 8.65 pence per share,
10% higher than last year."
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Manager of the Company, added: "We are
very pleased to have completed the sale of XLT and reinvested the
proceeds into Tampnet and Joulz. These are attractive assets which
further diversify the portfolio. In addition we have completed
several accretive bolt-on acquisitions, strengthening the market
position of our platform companies."
Investment activity
On 13 March 2019, the Company completed the sale of its 33.3%
stake in XLT to a consortium of funds managed by Dalmore and
Equitix. XLT was established to procure and lease 115 passenger
trains for use on the Thameslink rail franchise in London. The
transaction was announced on 5 February 2019 with proceeds to 3i
Infrastructure of GBP333 million.
On 14 March 2019, following the receipt of regulatory approvals
in Europe and the USA, the Company completed the acquisition of
Tampnet for EUR226 million, investing alongside Danish pension fund
ATP, with each party acquiring 50%. 3i Investments plc will manage
the investment on behalf of the consortium. Tampnet is the leading
offshore telecoms network operator in the North Sea and the Gulf of
Mexico. The transaction was announced on 27 July 2018.
On 13 March 2019, the Company agreed to invest approximately
EUR220 million to acquire 100% of Joulz, a leading owner and
provider of essential energy infrastructure equipment and services
in the Netherlands. Joulz is being acquired from Stedin Holding NV,
a municipality-owned Dutch distribution grid operator. Joulz leases
essential energy infrastructure equipment and meters to a large and
diversified customer base of industrial, commercial and public
sector customers. Joulz is set to benefit from the Dutch
Government's commitment to decarbonising the economy through the
electrification of heat and transport, a focus on increased energy
efficiency and the expansion of renewable generation. Completion is
subject to certain third party approvals and is expected to occur
in the first quarter of the next financial year.
On 27 February 2019, TCR completed the acquisition of Aerolima,
another independent ground service equipment lessor in France. The
transaction adds approximately 2,000 pieces of equipment and 12
workshops to TCR's existing business. The transaction was funded
from TCR's cash flow and debt facilities.
On 29 October 2018, WIG acquired Arqiva's Indoor Networks
business in the UK, and in Ireland, it acquired Highpoint. The
purchase of Arqiva's entire portfolio of Indoor Networks adds 42
networks across the UK, covering busy locations such as Canary
Wharf and Luton Airport. Highpoint consists of a portfolio of 27
telecoms towers, and is an opportunity for WIG to build scale in
its Irish business by more than doubling its existing presence.
Both acquisitions were funded through WIG's cash flow and debt
facilities.
Portfolio and returns
The Company's portfolio overall continues to perform well.
Attero has delivered two of its strategic initiatives in the
period. On 3 October 2018, it opened a new 120MW steam turbine at
its Moerdijk energy-from-waste facility. Excess heat from the waste
incineration process is used to produce steam and drive the
turbine, creating an environmentally friendly and renewable source
of electricity. On 15 March 2019, it opened a new Polymer Recycling
Plant ('PRP'). The PRP will enable Attero to recycle 24,000 tonnes
of used plastic packaging per annum into high quality regranulate
for reuse by manufacturers. Attero's debt structure has been
refinanced on improved terms under an investment grade structure,
with lower cost of debt and longer maturity, taking advantage of
favourable debt markets.
ESVAGT signed several material contract extensions for larger
Emergency Response and Rescue Vessels. The option for a third wind
support vessel was exercised by MHI Vestas under the new contract
announced on 17 September 2018. ESVAGT appointed a new CFO Sisse
Mai in December 2018.
Oystercatcher continues to experience softer demand for storage
of certain product types. We expect that there may be some
improvement over the next year as IMO 2020 comes into force.
Infinis continues to be impacted by regulatory uncertainty,
including the suspension of capacity market payments.
Portfolio income (dividends, interest receivable and any fees
received from portfolio assets) totalled GBP68.5 million in the
period and non-income cash of GBP0.2 million was also received.
As usual, an important element of the determination of the
Company's results for the full year to 31 March 2019 will be the
valuation exercise carried out on the investment portfolio at that
date. 3i Infrastructure expects to announce its results for the
year to 31 March 2019 on 9 May 2019.
Balance sheet
The Company manages its balance sheet and liquidity position
actively, seeking to maintain adequate liquidity to pursue new
investment opportunities, while not diluting shareholder returns by
holding surplus cash balances. At 28 March 2019, the Company had a
cash balance of GBP262 million, and an undrawn balance under its
RCF of GBP284 million out of the GBP300 million available. We
expect the majority of this cash balance to be used to fund the
investment in Joulz, together with the final dividend for the year
and expenses. The undrawn RCF balance provides liquidity for new
investments, and could be supplemented by the GBP200 million
accordion feature if required.
Ends
For information please contact:
Chair of the 3i Infrastructure plc Board
Richard Laing +44 1534 847 410
Thomas Fodor
Investor enquiries +44 20 7975 3469
=================
Kathryn van der Kroft
Media enquiries +44 20 7975 3021
=================
About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, an approved UK Investment Trust (with effect
from 15 October 2018), listed on the London Stock Exchange and
regulated by the Jersey Financial Services Commission. It is a
long-term investor in infrastructure businesses and assets. Its
market focus is on economic infrastructure and greenfield projects
in developed economies, principally in Europe, investing in
operating businesses and projects which generate long-term yield
and capital growth.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and is the Investment manager of 3i Infrastructure
plc.
This press release is not for distribution (directly or
indirectly) in or to the United States, Canada, Australia or Japan
and is not an offer of securities for sale in or into the United
States, Canada, Australia or Japan. Securities may not be offered
or sold in the United States absent registration under the U.S.
Securities Act of 1933, as amended (the 'Securities Act'), or an
exemption from registration under the Securities Act. Any public
offering to be made in the United States will be made by means of a
prospectus that may be obtained from the issuer
or selling security holder and will contain detailed information
about 3i Group plc, 3i Infrastructure plc, 3i India Infrastructure
Fund and management, as applicable, as well as financial
statements. No public offering in the United States is currently
contemplated.
This statement aims to give an indication of material events and
transactions that have taken place in the period from 1 October
2018 to 28 March 2019 and their impact on the financial position of
3i Infrastructure plc. These indications reflect the Board's
current view. They are subject to a number of risks and
uncertainties and could change. Factors which could cause or
contribute to such differences include, but are not limited to,
general economic and market conditions and specific factors
affecting the financial prospects or performance of individual
investments within the portfolio of 3i Infrastructure plc.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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