Shares in the infrastructure development Fund “John lang” (JLIF) have soared after it was revealed that a consortium of Fund managers has made a step for the business.
Firm of the FTSE 250, which was isolated from a 170-year-old construction business John Laing in 2010 and buys infrastructure projects such as roads, hospitals and schools, announced the takeover of £1.45 billion.
The group of investors includes Dalmore capital, which also supports London’s ‘super sewer and Equitix investment management. Best offer for the sum of 142.5 p per share in cash and includes the payment of dividend to 3.57 p per share to shareholders of JLIF.
The price represents 20.6 PC premium to the closing price of the shares of JLIF 118.2 p on Friday. The offer sent shares in the company soaring 18.61 PC in morning trade at 140.2 p.
Analysts say the move could revive interest in space infrastructure, which are traditionally popular among investors as an alternative asset class, but has recently fallen out of favour.
“The risk that a potential labour government could deal with private participation in major public projects, in particular, after the refusal, the bell tower earlier this year, is perhaps the biggest negative factor,” – said the Director of AJ bell investment Russ mould.
“However, the revelation of interest to capture infrastructure Fund John Laing helps to revive interest in the industry, with colleagues, International public partnerships and HICL infrastructure and demand in the stock market.”
The Hub Markets – John Laing Infrastructure Fund Ltd
Jefferies analyst Matthew hose, said a successful bid of the consortium will now depend on any counter-parties interested in the business, one of the largest investors in Europe in public infrastructure projects.
“Most likely [the counter-parties], there are other private investment funds or pension funds,” he said. “However, we should not underestimate the knowledge base of the current participants Dalmore capital and Equitix, as both sides are already highly active participants in the Private Finance initiative in the UK (PFI) sector.”
Dalmore has more than £4 billion of funds under management and invests in low-risk infrastructure projects, while Equitix around £3 billion of assets under management.
The pair previously joined forces to acquire 75pc of shares in the project vehicle M25 PPP.
Equitix led a consortium to buy stake in high speed 1 rail infrastructure project in the UK, while the Dalmore is an investor in the Thames project the channel tunnel, England Cadent and water.