International Public Partnerships Limited (INPP) has announced that it will raise approximately £32 million from the partial sale of its stake in Angel Trains, the UK’s largest rolling stock leasing company. The sale of a minority part of its investment to a vehicle managed by Arjun Infrastructure Partners is expected to complete in the coming weeks.
The transaction, which values the stake at a significant premium to INPP’s last published valuation on 31st December 2024, is for a 1.6% stake in Angel Trains. Following the disposal, INPP will retain an approximately 8.4% stake in the company and will continue to have board representation and active governance through its Investment Adviser, Amber Infrastructure Group.
INPP initially invested in Angel Trains in 2008 and has made subsequent follow-on investments. The company, which owns over 4,000 vehicles, has been a key investor and innovator in the UK rail industry since 1994.
Mike Gerrard, Chair at INPP, said: “The Company remains focused on optimising its portfolio while supporting both capital returns and attractive reinvestment opportunities. This announcement reflects INPP’s strategy of delivering against its stated targets – demonstrated by the Company’s recent announcements, including the successful completion of its recent UK Education PPP transaction, realising £49 million, and selection as preferred bidder for Sizewell C.”
The partial sale is consistent with INPP’s disciplined approach to capital allocation, which includes targeted divestments to demonstrate value and realise capital. The proceeds from this sale will be used to support the company’s previously announced share buyback programme, which has recently been extended to up to £200 million. To date, around £88 million has been used to buy back the company’s shares.
The funds will also support future investment commitments, such as the recently announced £250 million commitment to Sizewell C. This landmark project will see INPP invest alongside the UK Government, the Nuclear Liabilities Fund, and other partners to finance the construction and 60-year operations of a new nuclear plant capable of producing 3.2GW of low-carbon electricity, meeting 7% of the UK’s forecast electricity needs.
Since July 2023, INPP has now realised over £345 million of proceeds from disposals across the energy transmission, social, transport, and digital infrastructure sectors, equivalent to approximately 13% of its portfolio. All realisations have been at or above the relevant published valuations.
