AGREEMENT TO MAKE ADDITIONAL c.£35-40M INVESTMENT COMMITMENT IN CADENT GAS DISTRIBUTION NETWORK
1 May 2018
International Public Partnerships Limited ('the Company', 'INPP'), the listed infrastructure investment company, advises that it has agreed to acquire an additional interest in the Cadent gas distribution network.
In March 2017, the Company announced that the Quadgas consortium of which INPP is part had acquired a 61% interest in National Grid's gas distribution networks ('GDN'). The Company made an investment of £274 million for a 4.4% interest in the Consortium. At the same time the Company announced that additional to the 61% interest acquired by the Consortium, a further 14% interest in the networks has also been negotiated with National Grid and was subject to put and call options between National Grid and the Consortium. In addition, the Consortium had pre-emption arrangements over the residual 25% investment that National Grid was expected to continue to hold after exercise of these options.
This latest investment arises as part of the Quadgas consortium having entered into a second put and call option agreement providing for National Grid to dispose of its remaining 25% holding in Cadent and for the consortium to acquire 100% ownership of that business.
In aggregate on conclusion of these arrangements the Company will hold a 7.25% ownership interest in Cadent giving it the permanent right to appoint a board director. This has been the Company's long term target level of shareholding in the Cadent business.
The Company's third and final investment commitment is expected to be between £35m-£40m investment and, as with the previous option entered in March last year, will be exercisable in 2019. The pricing for this further acquisition has not been disclosed on account of there being a number of factors feeding into the final price but the Company confirms that this further investment is forecast to be accretive to the Company's current portfolio in terms of discount rate, yield contribution and inflation indexation.
ENDS.
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 20 3727 1046/1039
FTI Consulting
About International Public Partnerships (INPP):
International Public Partnerships ('INPP') is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships ('PPP'), private finance initiative ('PFI'), regulated asset and other similar procurement methods.
Listed in 2006, INPP is a long-term investor in 129 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the UK, Europe, Australia and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth through investment across both construction and operational phases typically of 25-40 year concessions.
Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and consists over 100 dedicated staff who manage, advise on and originate investments for INPP.
Visit the INPP website at www.internationalpublicpartnerships.com for more information.
Important information
This announcement contains information that is inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.
This announcement is an advertisement. It does not constitute a prospectus relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor.
Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These forward-looking statements speak only as at the date of this announcement. The Company, Amber and Numis Securities expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.
