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(Alliance News) - UIL Ltd said Monday it has agreed to sell its fourth largest portfolio holding, Optal Ltd.
UIL also noted Optal, a B2B digital payment services provider, represents the investment company's largest unlisted holding.
A definitive agreement for the sale of Optal and eNett International - a joint venture between Optal and Travelport Worldwide Ltd, which provides a travel commerce platform - has been signed with WEX Inc for a total consideration of USD1.7 billion comprising about USD1.28 billion in cash and about 2 million shares of WEX common stock.
US payment processor WEX closed 3.4% higher in New York on Friday at USD230.00.
The sale is still subject to regulatory approvals, but is expected to complete in mid-2020.
Optal represents about 7.3% of UIL's portfolio, but UIL does not expect the transaction to have a material impact on its net asset value. The investment company reported NAV per share as at June 30 of 369.57 pence.
Charles Jillings, Chief Executive at ICM Investment Management, UIL's investment manager said: "Having been long term shareholders and supporters of the company, the acquisition by WEX is a testament to the high growth, quality business that the teams at Optal and eNett have built in less than a decade - becoming one of the largest global providers of digital payments technology. We look forward to seeing the combined platform grow to the next level."
Shares in UIL were down 0.4% in London on Monday at 244.94 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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