HICL acquires another 7.2pc of French motorway project

Listed infrastructure investment firm HICL Infrastructure Company has agreed to acquire a further 7.2% interest in the A63 motorway concession in France for €62m, from funds managed by DIF Infrastructure III and DIF Infrastructure IV, it announced on Monday.

The FTSE 250 company said the acquisition was not subject to any further conditions, and would complete by the end of the month.

It described the project as a 40-year toll-road concession to design, upgrade, finance, operate and maintain a 104 km section of the existing A63 between Salles and Saint-Geours-de-Maremne, in south west France.

Financial close occurred in 2010, and the upgraded road opened in 2013.

HICL acquired an initial 13.8% interest in the project in January last year and, with completion of the new incremental investment, would hold a 21% interest in the project.

“The consideration is in line with the carrying value of HICL's existing investment in the project as at 31 March 2018,” the board said in its statement.

“It will be funded from the proceeds of the disposal of the Highland Schools PPP2 Project, which was announced in April.

“The acquisition exemplifies an ongoing strategy of portfolio optimisation for the company.”

HICL said the acquisition was accretive to its existing portfolio, particularly in terms of total return and cash flow longevity.