HSBC's £2.1bn rolling stock disposal

4th Nov 2010 17:47

HSBC is selling Eversholt Rail Group for £2.1bn to a group of investment funds. The sale price is slightly higher than the book value of the assets. Eversholt is one of the UK's main rolling stock companies. It provides 29% of the UK's rail rolling stock to passenger and freight markets. The trains are leased to seven rail operating companies. The investment funds buying Eversholt are managed by 3i Infrastructure, Morgan Stanley Infrastructure Partners and STAR Capital Partners. They are financing the purchase through a combination of equity and debt. Fully listed 3i Infrastructure will contribute £176m of the equity. The transaction should be completed before the end of 2010.