IIP.L Share News (IIP)

AIM-quoted infrastructure investor Infrastructure India is raising £33m at 60.5p a share and acquiring significant new investments. After expenses, Infrastructure India will have £31.4m to invest in new infrastructure assets. Infrastructure India is acquiring 50% of India Hydropower Development Company and up to 99.99% of Vikram Logistic & Maritime Services (VLMS) from Guggenheim Global Infrastructure Company (GGIC), which is also taking up £2.5m of the placing shares, and Anuradha Holdings. All but $1.5m of the $191.5m purchase price will be paid in shares so most of the cash pile will be intact. The acquisitions bring with them an experienced management team as well as making the group business much more significant. Infrastructure India already has investments in a hydropower project and a toll road development. These acquisitions by Infrastructure India require shareholder approval because they are classed as a reverse takeover. Guggenheim Franklin Park Management, which owns GGIC, will be appointed as the asset manager of Infrastructure India. Westhouse has been appointed as joint broker. Infrastructure India switched from the Main Market to AIM on 16 November.