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Topic: HSBC To Sell ROSCO (Read 1171 times)
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Lee
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From Reuters:HSBC in final price negotiations on train sale-sources
June 28 (Reuters) - HSBC Holdings PLC (HSBA.L) is in final price negotiations with a consortium of infrastructure funds on the sale of its rolling stock business, Eversholt, several people familiar with the matter said on Monday.
Morgan Stanley (MS.N) Infrastructure, 3i Infrastructure (3IN.L) and Star Capital are in advanced talks to buy Eversholt, which owns one third of Britain's rolling stock and for which HSBC expects to be paid some 2 billion pounds, the sources said.
"They are haggling over the price, they have to decide how much equity they put in," one of the sources said on condition of anonymity because details of the sale are confidential.
HSBC, Morgan Stanley and Star Capital declined to comment. A 3i Infrastructure spokeswoman was not immediately available for comment.
The rail unit has a UK fleet of over 4,000 train coaches and its sale follows the rationale of the divestments of the other two UK train leasing companies, as banks look to raise cash by disposing assets not central to their businesses.
In June 2008, Royal Bank of Scotland (RBS.L) agreed to sell its train leasing firm, Angel Trains, to a consortium led by Babcock & Brown -- now Arcus Infrastructure -- for an enterprise value of 3.6 billion pounds.
This was followed by the sale of the British rolling stock firm Porterbrook by Abbey National -- now part of Santander (SAN.MC) -- to a consortium of Deutsche Bank (DBKGn.DE), LLoyds TSB (LLOY.L) and BNP Paribas (BNPP.PA)-sponsored Antin Infrastructure Partners for 2 billion pounds. |
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Graham Ellis
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Lots of prices there.
How much was this stock sold to the RoSCOs for in the first place? Was it more or less that these amounts? The HSBC figure looks like about half a million pounds per carriage; don't know about Porterbrook and Angel trains, as no vehicle count was given in the article ....
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Lee
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The Royal Bank of Scotland bought Angel Trains from a shareholder group led by Nomura International for £395 million in 1997.
Abbey bought Porterbrook from Stagecoach in 2000 for £1.4bn
HSBC bought Eversholt from Candover in 1997 for £726 million. Candover had previously purchased the assets for the business for £518 million from the Government in 1996.
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Graham Ellis
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So HSBC's investment has grown 3 fold in actual terms in 13 years - an interesting figure. I suspect it looks unusually good put that way and isn't taking account of small operational matters (such as fleet renewals, investment, dividends etc, other sales and purchases) which will make the whole comparison pretty well useless at this rough level / over this long a period. Interesting sums to do, though!
Looks like the factor for Angel Trains was more like 10. Have I read that right?
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