Edinburgh fund in bid team
John Laing Infrastructure Fund in £1.45bn offer
JLIF has invested in the new InterCity Express programme (pic: JLIF)
Shares in John Laing Infrastructure soared by more than 18% after the company revealed it was in talks over a possible £1.45 billion cash offer from a consortium involving fund manager Dalmore Capital and Equitix.
The offer of 142.5p per share in cash comes with a 3.57p dividend before the transaction completes.
JLIF shares rose 21.8p to 140p just below the offer price which has been pitched at 23.6% more than the investment company’s closing price of 118.2p per share on Friday.
The offer also represents a 19.8% premium to JLIF’s last published net asset value of 121.9p per share on 31 March.
JLIF said: “Following a period of negotiation with the consortium, the board of JLIF have indicated to the consortium that it is minded to recommend a firm intention to make an offer for JLIF if made by the consortium on the terms set out in this announcement.”
The move comes amid falling values for social infrastructure funds in response to Labour’s hostility to PFI financing and the collapse of Carillion.
Dalmore and Equitix are specialist infrastucture investors running funds for institutional investors. Their bid would be made through a jointly-owned company.
JLIF lists its main sectors of investment as health, education, justice & emergency services, transport and goverment buildings. It owns 26% of Modus Services which has a 30-year contract to run the Ministry of Defence’s headquarters in Whitehall.
Dalmore has offices in Edinburgh’s west end and in London. It has more than £4 billion of investors’ funds under management, largely from long-term UK pension funds. Dalmore invests primarily in low risk infrastructure opportunities, including PFI/PPP projects, UK offshore transmission assets and regulated assets such as the UK gas distribution business, Cadent.
Equitix manages a portfolio of more than 170 assets, with c.£3 billion of assets under management.