HSBC Infra. in £66m outlay

7th Oct 2010 08:51

Infrastructure investment company HSBC Infrastructure has signed agreements to acquire stakes in four public/private projects, including two in Canada.The infrastructure investment company has signed a binding conditional agreement to acquire an interest in two UK private finance initiative (PFI) and in two Canadian public/private partnership (P3) projects from subsidiaries of Bilfinger Berger.The total consideration, including deferred investment subscription obligations of approximately £46.1m, is close to £65.9m at current exchange rates.The price paid is in line with the valuation of similar PFI and PPP investments in the company's current portfolio, and in line with current valuations in the Canadian P3 market, the company said.The four stakes being purchased comprise:- a 50% interest in the Kent Schools PFI project - a 41.6% indirect interest in the M80 motorway DBFO project currently under construction in Scotland. Through the future exercise of options rights over minority interests, this interest will increase to 49.9%,- a 50% interest in the North-West Anthony Henday ring road P3 project currently in construction in Alberta, Canada - a 50% interest in the Kicking Horse Canyon Transit P3 project in British Columbia, Canada, part of the Trans-Canada Highway.The acquisitions take the number of infrastructure investments in the company's portfolio to 38.