Dalmore agrees deal
Anglo-Scots fund confirms £1.45bn offer for JLIF
JLIF: 65 operational projects
One of Europe’s largest listed infrastructure funds has agreed to be taken over in a £1.45bn deal by a consortium involving a fund part-managed in Edinburgh.
The board of John Laing Infrastructure Fund (JLIF) is recommending the 142p per share cash offer from Jura Acquisition, a newly formed company owned by funds managed by Dalmore Capital and Equitix Investment Management.
Under the terms of the offer, first announced last month, shareholders will also be entitled to receive the payment of a dividend by JLIF of up to 3.57p for each JLIF Share for the six-month period ended 30 June.
The terms of the offer represent a premium of approximately 23.6% to the closing price per JLIF Share of 118.2 pence on 13 July, the last business day before commencement of the offer period.
Dalmore, with offices in Edinburgh and London, and Equitix are two of the largest and most credible infrastructure investors in the UK, together managing more than £7bn of global infrastructure assets, including more than £6.5bn in the UK, mainly pension funds and other institutional investors who are long-term owners of infrastructure assets.
Dalmore has more than £4 billion of investors’ funds under management and invests primarily in low risk infrastructure opportunities, including PFI/PPP projects, U.K. offshore transmission assets and regulated assets such as the UK gas distribution business, Cadent.
Alongside discretionary managed funds, Dalmore has also been able to offer a range of co-investment and single asset / account transactions, deploying over £2.4 billion for its investors to date.
Equitix operates across a number of sectors such as social housing, education, healthcare, waste and renewables, highways and street lighting, student and government accommodation, utility infrastructure, transport and energy efficient investments. It manages a portfolio of more than 170 assets, with approximately £3bn of assets under management.
EEL is a newly incorporated company formed for the purpose of implementing the offer and investing alongside Dalmore, as an additional member of the consortium, in certain non-U.K. assets on an ‘own funds’ basis.
David MacLellan, Chairman of JLIF, said: “Since its launch in 2010, JLIF has grown to become one of Europe’s largest listed infrastructure funds, with 65 high-quality, low-risk, predominately operational projects across the UK, Europe and North America.
“In that time, we have worked to create significant value for our shareholders, with total shareholder returns of 101%., which compares favourably to the FTSE All Share of 47%. We are proud of what JLIF has achieved and what it has become.”
He said the JLIF Board regards the offer from the consortium as an attractive premium, securing early delivery of our long-term value potential.
“As a result, the JLIF Board has concluded that the offer is in the best interests of JLIF Shareholders and JLIF as a whole,” he said.
Alistair Ray, chief investment officer at Dalmore, said: “Dalmore, on behalf of the consortium and its investors, is very pleased to announce the proposed acquisition of JLIF, which has a mature cash flow profile that matches the long-term nature of the institutional and pension fund investors the Consortium represents.”
Hugh Crossley, chief investment officer at Equitix, said: “The transaction represents a great opportunity for Equitix to invest in a diversified, UK-focused portfolio that fits well with our core infrastructure strategy.
“We are committed to investing for the long-term in U.K. PFI/PPP projects, which continue to offer our investors predictable yields through stable, long-term cash flows.”