LONDON (dpa-AFX) - 3i Group PLC (III.L), a private equity and venture capital company, announced Monday the sale of its investment in Scandlines and the reinvestment. The company received net proceeds of 347 million euros from the transaction.
3i and the funds managed by the company, together Eurofund V, have sold their investment in Scandlines for a total equity value of 1.7 billion euros in a transaction with funds managed by First State Investments and Hermes Investment Management, two long-term infrastructure investors representing predominantly European pension funds.
The valuation of 3i's 55% stake as of December 31, 2017 was 744 million euros or 662 million pounds. The transaction value is at an uplift of 27% to this value.
3i has separately agreed to reinvest into Scandlines at the same transaction value to become a 35% shareholder alongside First State, with 50.1%, and Hermes Investment Management, with 14.9%. Net cash proceeds to 3i following the reinvestment will be 347 million euros, and are expected to be received in the first quarter of FY2019.
Scandlines operates two short-distance, high-frequency ferry routes between Germany and Denmark which provide a critical transport link between Scandinavia and Germany and the rest of Continental Europe.
3i, and funds managed by 3i, initially acquired a 40% stake in Scandlines in 2007. They bought a further 10% stake from Deutsche Seerederei in 2010 and acquired the remaining 50% from Allianz Capital Partners in November 2013.
First State, Hermes Investment Management and 3i intend to support the further growth of Scandlines, including additional investment in green technology.
Copyright RTT News/dpa-AFX