Company News

UPDATE 1-John Laing to sell stake in InterCity Express Programme Phase 2 for $545.9 mln

(Adds details on deal, IEP, shares)

Sept 18 (Reuters) - 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