HICL Infrastructure indirectly acquires stake in Road Management Group

Investment firm HICL Infrastructure has indirectly acquired a 33.3% interest in Road Management Group, a holding company that comprises two UK shadow toll roads.

HICL picked up the stake in RMG and the A417/A419 Swindon-Gloucester and the A1(M) Alconbury-Peterborough projects from Abertis Infraestructuras for a combined consideration of up to £34.4m.

The FTSE 250-listed firm noted that the investment would be funded by its existing revolving credit facility.

Edward Hunt, a director at HICL manager InfraRed, said: "We are delighted to be acquiring a stake in two high-quality UK road projects which provide critical transport links to their respective communities.

"Both projects have predictable revenues, have been acquired on an ungeared basis and are expected to be accretive to portfolio yield and total return."

As of 0945 GMT, HICL shares were down 0.12% at 171.20p.