HICL Infrastructure PLC (LON:HICL) has announced the disposal of HICL’s A63 Motorway investment
| • | Disposal of HICL’s 24.0% stake in the A63 Motorway in France, the Company’s second largest portfolio asset (8.4% as at 30 September 2025) in which it first invested in 2017 |
| • | Gross proceeds of c. £311m1 represent a 21% premium to HICL’s most recent valuation of its A63 investment |
| • | The disposal delivers an additional 2.2p of NAV per share and an annualised holding period return (IRR) in excess of HICL’s weighted average discount rate |
| • | The disposal is accretive to HICL’s key portfolio metrics of expected return; yield; inflation correlation; and asset life |
| • | InfraRed developed the asset from greenfield stage through construction and ramp up, creating value across each stage of the asset’s lifecycle |
| • | The transaction takes total divestments made by HICL in the last 3 years to over £1bn at a weighted average premium of 11%, driven by InfraRed’s active management of capital rotation |
| • | Intention to deploy proceeds into attractive investment opportunities, which would further enhance HICL’s return and growth profile, and which exceed the hurdle set by share buybacks |
Mike Bane, HICL Infrastructure Chair, said:
“This disposal demonstrates once again the quality of HICL’s portfolio and our proven ability to generate value through disciplined asset rotation in all market conditions. We have completed over £1 billion of disposals since 1 April 2023 at a weighted average premium of 11%; this underscores HICL’s active approach to asset rotation to create long-term shareholder value. Looking forward, the Board sees significant opportunity to invest the proceeds into currently available investment opportunities, where these enhance HICL’s strategic priorities and the expected returns exceed the hurdle set by share buybacks.”
Edward Hunt, Head of Core Infrastructure Funds at InfraRed said:
“The A63 illustrates InfraRed’s ability to originate, build, de‑risk, manage and ultimately realise assets at highly attractive valuations, leveraging expertise across its investment platform. This long‑term stewardship of the A63 has delivered a highly valuable outcome for HICL and reinforces our confidence in the opportunity to reinvest capital accretively and build long-term value for shareholders.”
The Board is pleased to announce that HICL has agreed to dispose of its 24.0% shareholding in Atlandes S.A., the portfolio company which owns the A63 Motorway in France, to the majority shareholder for a gross consideration of c.£311m.
HICL worked together with other minority shareholders to enable the majority shareholder to acquire 100% ownership of Atlandes S.A. This disposal represents a 21% premium to the valuation as at 30 September 2025 and will deliver 2.2p of NAV outperformance post tax and transaction costs and an annualised holding period return (IRR) in excess of HICL’s weighted average discount rate.
The A63 divestment is accretive to HICL’s key portfolio metrics of expected return; yield; inflation correlation; and asset life. It also reduces HICL’s portfolio exposure to lifecycle risk and political uncertainty in France.
InfraRed’s involvement with the A63 Motorway concession spans the full lifecycle of the asset. The Investment Manager developed the asset from its greenfield stage through an InfraRed managed private fund, guiding the asset through development, construction and subsequent ramp-up. Building on this foundation, HICL completed its first investment in the A63 in 2017 and increased its shareholding through incremental investments in 2018 and most recently in 2024 – in each case on attractive terms.
Across this 9-year ownership period, InfraRed has actively managed the asset through multiple market cycles, working closely with A63’s experienced management team, to enhance operational performance and resilience, including through the Covid-19 pandemic. This long-term, proactive stewardship positioned the asset for a strongly accretive realisation, consistent with HICL’s disciplined approach to capital rotation.
This disposal provides additional capacity to redeploy capital into attractive investment opportunities, which continue to progress HICL’s return and growth profile. The Investment Manager is actively pursuing an exclusive investment position as well as a number of live opportunities where expected returns exceed the benchmark return available from share buybacks. At the same time, the transaction increases the Company’s flexibility to adjust the current pace of share buybacks where appropriate in response to movements in the share price discount to NAV.
Completion of the transaction is not subject to any consents and is expected to occur later today. As at 31 March 2026, the Company expects to have a cash balance of c.£90m1, and no drawings under its Revolving Credit Facility, with c.£336m1 of proceeds from recent disposals held in the underlying HICL group. Of this cash balance, c.£66m will be allocated to fund the existing equity commitments to the Blankenburg tunnel and the B247, due in September and December 2026 respectively.
1. Disposal proceeds received in Euros are translated into Sterling at the rate prevailing on 24 March 2026. This may differ from the eventual rate used to convert the proceeds.
