21.01.15
Hong Kong conglomerate buys major UK rolling stock company
CK Investments (CKI) is buying rolling stock leasing company Eversholt Rail from its current owners – a consortium of 3i Infrastructure plc, Morgan Stanley Infrastructure Partners and STAR Capital Partners.
The consortium has agreed to sell 100% of Eversholt to CKI, which is jointly owned by Cheung Kong Infrastructure Holdings Limited and Cheung Kong (Holdings) Limited, based in Hong Kong.
The transaction, subject to regulatory approval from the European Commission, has an equity value of £1.1bn and enterprise value of £2.5bn and is expected to close in March 2015.
Created in 1994 as part of the privatisation of British Rail, Eversholt Rail is one of the three major rolling stock operating companies in the UK and owns approximately 28% of the country’s passenger train fleet.
Mary Kenny, CEO of Eversholt Rail, said: “Eversholt Rail has performed strongly, both operationally and financially, under its current ownership providing, managing and maintaining key UK rail assets.
“We look forward to continuing our success with CKI, who have extensive experience in managing infrastructure assets and are highly supportive of our strategy and approach.”
Eversholt Rail, formerly HSBC Rail (UK) Ltd, has been owned by the consortium since 2010. Its rolling stock portfolio includes 3,474 passenger vehicles, 1,003 freight wagons, 63 load units and two depots.
Victor Li, chairman of CKI and managing director of CKH, said: “The rolling stock leasing business adds a new facet to our transportation business portfolio. We are very happy to enter into this new industry.
“Eversholt Rail is poised to extend our growth momentum and generate recurring profit contributions similar to that of our other infrastructure projects.”
CKI added that the rail and rolling stock industry provides a “good opportunity for future growth”. Eversholt is CKI’s third acquisition in the last six months, following its investments in Canadian off-airport car park business Park’N Fly in July 2014; and the acquisition of Australian gas distribution company Envestra.
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