HICL Infrastructure PLC (HICL.L), an infrastructure investment company, on Wednesday announced the disposal of its stake in the A63 Motorway in France.
The company has agreed to sell its 24% shareholding in Atlandes S.A., which owns the A63 Motorway, to the majority shareholder for gross proceeds of about £311 million.
The deal represents a 21% premium to the asset's valuation as at September 30, 2025. The transaction is expected to add about 2.2 pence to net asset value (NAV) per share and generate returns above the company's target rate.
HICL said the divestment is accretive to key portfolio metrics, including expected return, yield, inflation correlation and asset life, while also reducing exposure to lifecycle risk and political uncertainty in France.
The A63 Motorway has been a core asset for HICL since its initial investment in 2017, with the position subsequently increased in 2018 and 2024. The asset was originally developed from scratch by InfraRed Capital Partners Limited, which continues to manage it.
Over the past three years, HICL has completed more than £1 billion of disposals at an average premium of 11%, reflecting its strategy of active capital rotation.
The deal is expected to close later on Wednesday.
"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," Mike Bane, HICL Chair, said.
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