CK Infrastructure Holdings Ltd. is exploring the sale of Eversholt Rail, a leading UK rolling stock company. Valued at up to £4 billion ($4.9 billion), it remains a highly sought-after asset. This was reported by the railway transport news portal Railway Supply.

CK Infrastructure Holdings Ltd. is exploring the sale of Eversholt Rail, a leading UK rolling stock company. Valued at up to £4 billion ($4.9 billion), it remains a highly sought-after asset
Workers stand at the edge of railway tracks (Simon Dawson/Bloomberg)

CKI Explores Strategic Options for Eversholt Rail

Hong Kong-listed CKI is collaborating with Rothschild & Co. to assess its options for Eversholt Rail. The company is reportedly in the early stages of deliberation, and a final decision has not yet been made. CKI may ultimately decide to retain the asset if market conditions are unfavorable or if bids do not meet expectations.

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Eversholt Rail, a major player in the UK’s transportation sector, manages a fleet of 19 passenger train groups and freight locomotives. Its 2,715 vehicles, more than half of which are electric-powered, demonstrate a commitment to sustainability and innovation. These qualities make it an attractive investment for infrastructure investors, sovereign wealth funds, and pension funds.

What the Potential Sale Means for Eversholt Rail?

If the sale proceeds, it would mark a significant shift in CKI’s exposure to the UK infrastructure market. The company generated 36% of its net income in 2023 from UK operations, including investments in UK Power Networks, Northern Gas Networks, and Northumbrian Water.

Eversholt Rail has remained a key player in the UK since its acquisition in 2015 for £2.5 billion by a CKI-led consortium. Originally formed during the privatization of British Rail, the company continues to lease regional and high-speed trains under long-term agreements. Its focus on electric-powered vehicles aligns with global goals for reducing carbon emissions, further increasing its appeal to environmentally conscious investors.

The outcome of CKI’s strategic review could set a precedent for future investments in the UK infrastructure sector. Market observers are keenly watching developments, as a deal of this magnitude has the potential to shape investor sentiment and impact valuations across the industry.

For now, CKI continues to evaluate its options carefully, ensuring the best outcome for its stakeholders while navigating a dynamic global market landscape.

Source: www.bnnbloomberg.ca

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