(Alliance News) - 3i Infrastructure PLC on Thursday announced the GBP387 million sale of its stake in a wireless infrastructure company.
3i has sold the 93% holding in Wireless Infrastructure Group to Brookfield Infrastructure. The GBP387 million price compares to a valuation of GBP291 million at September 30.
The infrastructure investor said the sale price results in a 27% gross internal rate of return, and it expects the sale to complete "very shortly". Half of the proceeds will come immediately, a quarter in 12 months time, and the rest in 24 months.
3i took a minority stake in WIG in April 2016, before investing a further GBP187 million in January 2018 to take its holding to 93%.
WIG builds and operates communications towers, and over the past three years 3i said it has undergone "significant" growth.
"This transaction delivers exceptional value to shareholders, well above our investment case back in 2016," said 3i Chair Richard Laing.
"Whilst 3i Infrastructure aims to hold its investments over the longer term, we will sell investments where this generates significant additional value for shareholders. This has been an excellent investment for the company, despite the relatively short holding period."
Shares in 3i were 1.5% higher on Thursday afternoon in London at a price of 297 pence each.
By George Collard; georgecollard@alliancenews.com
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3i Infrastructure (3IN)