Hitachi : John Laing to sell stake in InterCity Express Programme Phase 2 for $545.9 million
September 18, 2020 at 03:14 am EDT
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Infrastructure investor John Laing Group said on Friday it would sell its 30% interest in the InterCity Express Programme (IEP) Phase 2 to infrastructure investment platform AIP Management for 421 million pounds ($545.9 million).
Shares of the company, which has moved away from its origins in construction in favour of investing in and managing greenfield infrastructure projects worldwide, rose 5.3% to 304 pence in early trade.
The deal will be completed in two stages, with the first stage including the sale of a 15% interest in IEP East, generating 203.4 million pounds along with a 7% per annum interest earned during the period between completion of the first and second stages, John Laing said.
The consideration for the second stage would be up to 217.6 million pounds.
Japan's Hitachi owns a 70% stake in the contract, which covers 65 trains for the East Coast Mainline along with the construction and refurbishment of four depots.
John Laing said as part of its dividend policy, it would pay about 5% to 10% of gross proceeds to its shareholders on an annual basis.
($1 = 0.7712 pounds)
(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Anil D'Silva)
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).