HONGKONG/LONDON, Jan 20 (Reuters) - Hong Kong's Cheung KongInfrastructure Holdings Ltd, backed by Li Ka-shing,Asia's richest man, has bought Britain's Eversholt Rail for 2.5billion pounds ($3.8 billion), the latest in a string of Asianbuyers targeting European assets.
UK private equity fund 3i Infrastructure Plc said onTuesday that it and Eversholt's other investors had sold theirentire holding to the Hong Kong billionaire' s CKI group.
Eversholt owns around 28 percent of the UK's passengertrains, with 19 fleets. It is one of the UK's three leading railrolling stock companies.
3i, Morgan Stanley Infrastructure Partners, and STAR CapitalPartners with its co-investor PGGM, acquired the business for2.1 billion pounds from HSBC in 2010.
The sale of 3i's stake will generate around 358 millionpounds, it said, as well as a 15.5 million pound sum received inDecember. A source close to the deal said that STAR, a Londoninvestment fund manager, would make a return of 3.4 times itsinvestment.
Eversholt owns around 28 percent of the UK's passengertrains, with 19 fleets. It is one of the UK's three leading railrolling stock companies.
One source familiar with the matter said that CKI pre-emptedan auction process for Eversholt after losing out on the salelast year of Porterbrook, another UK rail rolling stock company.
Eversholt, Angel Trains and Porterbrook have dominated themarket since 1994 when the UK government privatised thecountry's railways. The companies have proved attractive toinvestors for their steady income, longer-term leases and thecountry's growing numbers of rail passengers.
Eversholt had core earnings (EBITDA) of 263.2 million poundsin 2013, according to its website. The price of 2.5 billionpounds values Eversholt at about 9.5 times earnings beforeinterest, tax, depreciation and amortisation.
CKI also looked at Dublin-based aircraft lessor Awas, whileother Asian buyers have sought out Western deals. Last yearReuters reported that China Investment Corp and AVIC, a Chinesestate-owned aerospace and defence company, had been in talks toacquire private equity-backed Irish aircraft leasing firmAvolon. ($1 = 0.6605 British Pounds) (Reporting by Freya Berry and Anjuli Davies, additionalreporting by Elzio Barreto, Denny Thomas and Donny Kwok, editingby Louise Heavens)