London: Goldman Sachs Infrastructure Partners and Infracapital (part of Prudential) are selling their combined 33.33% interest in Associated British Ports to a Canada-led investor consortium, which will buy “at least 30%” of the stake.
The Goldman/Infracapital stake is worth £1.6bn on an equity value basis. The deal is expected to be closed this summer.
The consortium of buyers includes Canada Pension Plan Investment Board (CPPIB) and Hermes Infrastructure, an asset manager that is part of UK-based fund Hermes Investment Management, owned by the BT pension scheme.
The consortium may also opt to buy the remaining 3.33% of the Goldman’s slice, subject to pre-emption rights, a statement said today.
“ABP operates strategic UK infrastructure assets and is an excellent fit within Hermes Infrastructure’s core investment strategy. This targets infrastructure businesses that deliver long-term predictable inflation-linked cash flows, with robust cash yield,” Peter Hofbauer, head of Hermes Infrastructure said today.
“An investment in ABP is expected to deliver on all of these along with appropriate governance and a high-quality management team.”
ABP is the UK’s biggest ports company and owns and operates 21 ports in England, Scotland and Wales.