Infrastructure investment company John Laing Infrastructure Fund (JLIF) has signed a sale and purchase agreement for an indirect 6% minority shareholding in the Intercity Express Programme Phase 1 (IEP) project, from John Laing Investments Limited, a wholly-owned subsidiary of John Laing Group. The total consideration for the acquisition will be approximately £42.4 million (EUR 50.2 million). Completion of the transaction is expected in early 2017.
The IEP project, which is still in the construction phase, involves the provision of 57 new high speed intercity trains to be deployed on the Great Western Mainline. The contract with the Department for Transport (DfT) benefits from a 27.5-year concession from acceptance of the first train.
Hitachi will be both manufacturer and maintainer of the trains for the duration of the concession period, with typical pass-down of delivery and operational risk.
The first trainset is scheduled for delivery in 2017 with the remainder delivered over the subsequent 15-month period. The design life of the trains is 35 years.
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