KKR is buying London-listed infrastructure company John Laing for £2bn (€2.3bn).
The private equity firm is acquiring the company to take private by offering 403p for each John Laing share, an amount which represents a 30% premium to the FTSE 250 firm’s last closing stock price of 311p.
The acquisition, which is subject to a court-approved agreement, is expected to be recommended unanimously by the John Laing board.
John Laing develops and owns mid-market infrastructure assets across the UK and Europe, North America, Latin America and Australia.
KKR said it intends to support John Laing’s strategy by providing flexible access to long-term capital to fund further growth opportunities.
KKR said it has agreed to partner with infrastructure investor Equitix to jointly own John Laing’s existing asset portfolio once the acquisition is complete. Equitix will acquire a 50% shareholding in the existing asset portfolio which will continue to be managed by John Laing’s management team.
Will Samuel, chairman of the board of John Laing, said: “The John Laing board believes that the offer from KKR represents an attractive and certain value in cash today for John Laing shareholders and reflects the high quality of the business, its people and future prospects, as well as providing a positive outcome for John Laing pensioners.
“KKR is a strong partner, providing long-term capital and global expertise to accelerate John Laing’s strategy, growing the development capacity and assets of John Laing and creating opportunities for our employees and broader stakeholders.
“This is particularly relevant in the current environment where there may be significant opportunities to invest in critical infrastructure which responds to public needs.”
Tara Davies, partner and co-head of European infrastructure at KKR, said: “John Laing has a strong market position and a forty-year track record of delivering major infrastructure projects. There is growing global demand for national infrastructure which delivers societal benefit and reflects technological advances and policy priorities across areas such as connectivity, renewable energy and transport.
”Under private ownership and with flexible access to capital, John Laing can take a longer-term view as an owner and operator of assets during the next phase of its growth.”
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