A consortium that includes the Caisse de dépôt et placement du Québec has agreed to acquire a 40% stake in Eurostar International Ltd. from the U.K. government for £585.1 million ($1.1 billion).
Eurostar provides high-speed passenger train services running through the Channel Tunnel.
The Caisse and Hermes Infrastructure intend to own 30% and 10% of Eurostar, respectively. Eurostar’s other shareholders are Société Nationale des Chemins de Fer Français (SNCF), which owns 55%, and Société Nationale des Chemins de Fer Belges (SNCB), which owns the remaining 5%.
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“Alongside leading industry players, we are becoming partners of a highly strategic asset that will generate stable and predictable returns for our clients,” says Macky Tall, the Caisse’s senior vice-president, private equity and infrastructure. “This major investment is another opportunity for us to further build on our expertise in the transport sector, while broadening our footprint in the global marketplace.”
Completion of the transaction remains conditional upon SNCF receiving clearance from the European Commission and the German Federal Cartel Office.
Also, SNCF and SNCB have the option to acquire the U.K. government’s 40% interest for a 15% premium to the agreed price. Closing of the transaction is conditional on SNCF and SNCB not exercising the right.
It’s anticipated the transaction will close during the second quarter of 2015.
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