John Laing sells stake in East Coast Main Line project for £421m
John Laing Group today said it has agreed to sell its 30 per cent stake in the rolling stock project for the East Coast Main Line to AIP Management for £421m.
The infrastructure giant said the sale in the project — known as Intercity Express Programme Phase Two (IEP East) — marked a strong premium on its valuation of £333m at the end of June.
The IEP was an initiative launched by the government in 2012 to procure new trains for some of the UK’s busiest intercity rail routes.
John Laing completed the first phase in 2018, while the second phase covers 65 trains for the East Coast Main Line and the construction and refurbishment of four depots.
The project is majority controlled by Japanese conglomerate Hitachi, which holds a 70 per cent stake.
“We are delighted to have successfully completed the sale to AIP of this high-quality, availability-
based asset at a strong uplift to book value,” said Ben Loomes, chief executive of John Laing.
“This is an excellent example of how John Laing creates value through developing greenfield infrastructure, working closely with its partners to manage its projects through to operation, and then delivering strong realisation results for the group’s shareholders.”
The sale to Copenhagen-based AIP will be completed in two stages, with the sale of 15 per cent interest for £203.4m expected to complete shortly.
The remainder of the stake will be sold up to 12 months later for the same price plus interest.