Patina Rail LLP, a consortium comprising Caisse de dépôt et placement du Québec (“CDPQ”) and Hermes Infrastructure, part of Hermes Investment Management, has announced that they have agreed to acquire a 40% shareholding in Eurostar International Limited (“Eurostar”) from the UK Government.
CDPQ and Hermes Infrastructure intend to own 30% and 10% of Eurostar respectively. Eurostar’s other shareholders will comprise Société Nationale des Chemins de Fer Français (“SNCF”) (55%) and Société Nationale des Chemins de Fer Belges (“SNCB”) (5%).
Completion of the transaction remains conditional upon SNCF receiving clearance from the European Commission under the EU Merger Regulation and the transaction receiving clearance from the German Federal Cartel Office. SNCF and SNCB have the option (the “Pre-emption Right”) to acquire the UK Government’s 40% shareholding for a 15% premium to the agreed price. Closing of the transaction is conditional on SNCF and SNCB not exercising the Pre-emption Right. It is anticipated that the transaction will close during the second quarter of 2015.
“Eurostar is a high quality asset providing a direct link between the UK and Europe that has historically offered attractive investment characteristics, including long-term stable and predictable cash flows. We look forward to creating a long-term partnership with SNCF and SNCB and other key stakeholders in relation to this important investment,” Peter Hofbauer, Head of Hermes Infrastructure, said.
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