REG - HICL Infrastructure - Disposal of HICL's A63 Motorway investment

HICL InfrastructureAnnouncement

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RNS Number : 9827X  HICL Infrastructure PLC  25 March 2026

25 March 2026

HICL Infrastructure PLC

 

"HICL" or "the Company" and, together with its subsidiaries, "the Group", the
London-listed infrastructure investment company managed by InfraRed Capital
Partners Limited ("InfraRed" or the "Investment Manager").

 

Disposal of HICL's A63 Motorway investment

 

 •    Disposal of HICL's 24.0% stake in the A63 Motorway in France, the Company's
      second largest portfolio asset (8.4% as at 30 September 2025) in which it
      first invested in 2017
 •    Gross proceeds of c. £311m(1) represent a 21% premium to HICL's most recent
      valuation of its A63 investment
 •    The disposal delivers an additional 2.2p of NAV per share and an annualised
      holding period return (IRR) in excess of HICL's weighted average discount rate
 •    The disposal is accretive to HICL's key portfolio metrics of expected return;
      yield; inflation correlation; and asset life
 •    InfraRed developed the asset from greenfield stage through construction and
      ramp up, creating value across each stage of the asset's lifecycle
 •    The transaction takes total divestments made by HICL in the last 3 years to
      over £1bn at a weighted average premium of 11%, driven by InfraRed's active
      management of capital rotation
 •    Intention to deploy proceeds into attractive investment opportunities, which
      would further enhance HICL's return and growth profile, and which exceed the
      hurdle set by share buybacks

 

Mike Bane, HICL Chair, said:

 

"This disposal demonstrates once again the quality of HICL's portfolio and our
proven ability to generate value through disciplined asset rotation in all
market conditions. We have completed over £1 billion of disposals since 1
April 2023 at a weighted average premium of 11%; this underscores HICL's
active approach to asset rotation to create long-term shareholder value.
Looking forward, the Board sees significant opportunity to invest the proceeds
into currently available investment opportunities, where these enhance HICL's
strategic priorities and the expected returns exceed the hurdle set by share
buybacks."

 

Edward Hunt, Head of Core Infrastructure Funds at InfraRed said:

 

"The A63 illustrates InfraRed's ability to originate, build, de‑risk, manage
and ultimately realise assets at highly attractive valuations, leveraging
expertise across its investment platform. This long‑term stewardship of the
A63 has delivered a highly valuable outcome for HICL and reinforces our
confidence in the opportunity to reinvest capital accretively and build
long-term value for shareholders."

 

The Board is pleased to announce that HICL has agreed to dispose of its 24.0%
shareholding in Atlandes S.A., the portfolio company which owns the A63
Motorway in France, to the majority shareholder for a gross consideration of
c.£311m.

 

HICL worked together with other minority shareholders to enable the majority
shareholder to acquire 100% ownership of Atlandes S.A. This disposal
represents a 21% premium to the valuation as at 30 September 2025 and will
deliver 2.2p of NAV outperformance post tax and transaction costs and an
annualised holding period return (IRR) in excess of HICL's weighted average
discount rate.

 

The A63 divestment is accretive to HICL's key portfolio metrics of expected
return; yield; inflation correlation; and asset life. It also reduces HICL's
portfolio exposure to lifecycle risk and political uncertainty in France.

 

InfraRed's involvement with the A63 Motorway concession spans the full
lifecycle of the asset. The Investment Manager developed the asset from its
greenfield stage through an InfraRed managed private fund, guiding the asset
through development, construction and subsequent ramp-up. Building on this
foundation, HICL completed its first investment in the A63 in 2017 and
increased its shareholding through incremental investments in 2018 and most
recently in 2024 - in each case on attractive terms.

 

Across this 9-year ownership period, InfraRed has actively managed the asset
through multiple market cycles, working closely with A63's experienced
management team, to enhance operational performance and resilience, including
through the Covid-19 pandemic. This long-term, proactive stewardship
positioned the asset for a strongly accretive realisation, consistent with
HICL's disciplined approach to capital rotation.

 

This disposal provides additional capacity to redeploy capital into attractive
investment opportunities, which continue to progress HICL's return and growth
profile. The Investment Manager is actively pursuing an exclusive investment
position as well as a number of live opportunities where expected returns
exceed the benchmark return available from share buybacks. At the same time,
the transaction increases the Company's flexibility to adjust the current pace
of share buybacks where appropriate in response to movements in the share
price discount to NAV.

 

Completion of the transaction is not subject to any consents and is expected
to occur later today. As at 31 March 2026, the Company expects to have a cash
balance of c.£90m(1), and no drawings under its Revolving Credit Facility,
with c.£336m(1) of proceeds from recent disposals held in the underlying HICL
group. Of this cash balance, c.£66m will be allocated to fund the existing
equity commitments to the Blankenburg tunnel and the B247, due in September
and December 2026 respectively.

 

1.     Disposal proceeds received in Euros are translated into Sterling at
the rate prevailing on 24 March 2026. This may differ from the eventual rate
used to convert the proceeds.

 

-ends-

 

 

 Enquiries

 InfraRed Capital Partners Limited      +44 (0) 20 7484 1800 / info@hicl.com (mailto:info@hicl.com)
 Edward Hunt
 Mark Tiner
 Mohammed Zaheer

 Brunswick                              +44 (0) 20 7404 5959 / hicl@brunswickgroup.com
                                        (mailto:hicl@brunswickgroup.com)
 David Litterick

 Investec Bank plc                      +44(0) 20 7597 4952
 David Yovichic
 Denis Flanagan

 RBC Capital Markets                    +44 (0) 20 7653 4000
 Matthew Coakes
 Elizabeth Evans

 Aztec Financial Services (UK) Limited  +44(0) 203 818 0246
 Chris Copperwaite
 Magdala Mullegadoo

 

 

HICL Infrastructure PLC

 

HICL Infrastructure PLC ("HICL") is a leading long-term investor in
infrastructure assets, with a diversified portfolio of predominantly
operational investments generating stable, inflation-linked cashflows. Since
becoming the first infrastructure investment company to be listed on the
London Stock Exchange, HICL has established a strong track record of investing
in essential assets that support the delivery of public services and
long‑term value creation.

 

The Company's investment strategy is focused on delivering a total return for
shareholders consisting of sustainable dividend growth and long‑term NAV
accretion, enabled by highly visible cashflows, long asset lives and active
portfolio management. HICL's portfolio is positioned towards the lower end of
the infrastructure risk spectrum and is underpinned by disciplined capital
allocation, strong cash generation and a self‑funding model.

 

Further details can be found on the HICL website www.hicl.com
(http://www.hicl.com/) .

 

Investment Manager (InfraRed Capital Partners)

 

The Investment Manager to HICL is InfraRed Capital Partners Limited
("InfraRed") which has successfully invested in infrastructure projects since
1997. InfraRed is a leading international investment manager, operating
worldwide from offices in London, New York, Miami, Seoul, Madrid, Frankfurt
and Sydney and managing equity capital in multiple private and listed funds,
primarily for institutional investors across the globe. InfraRed is authorised
and regulated by the Financial Conduct Authority.

 

The infrastructure investment team at InfraRed consists of over 100 investment
professionals, all with an infrastructure investment background and a broad
range of relevant skills, including private equity, structured finance,
construction, renewable energy and facilities management.

 

InfraRed implements best-in-class practices to underpin asset management and
investment decisions, promotes ethical behaviour and has established community
engagement initiatives to support good causes in the wider community. InfraRed
is a signatory of the Principles of Responsible Investment.

 

Further details can be found on InfraRed's website www.ircp.com
(http://www.ircp.com/) .

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