John Laing board to unanimously recommend KKR\u2019s offer to shareholders to take firm private<\/p>\n
Last modified on Wed 19 May 2021 09.44 EDT<\/p>\n
The private-equity firm KKR has agreed to buy the UK infrastructure investor John Laing, which has stakes in Alder Hey children\u2019s hospital in Liverpool and a retirement homebuilding project with McCarthy & Stone, in a deal valued at about \u00a32bn.<\/p>\n
The takeover values the London-listed firm at 403p a share, which represents a 27% premium on the closing price of John Laing stock on 5 May, the day before it confirmed it was in talks with KKR.<\/p>\n<\/p>\n
John Laing has invested in more than 150 projects and businesses since it was founded, across a range of sectors including transport and energy.<\/p>\n
The firm, which was floated in February 2015, owns assets including schools, hospitals and infrastructure predominantly in the US and Australia as well as in Europe.<\/p>\n
The investor was involved in the 2013 redevelopment of Alder Hey, which was funded through a private finance initiative, and as a result still holds a 40% stake in the hospital.<\/p>\n
John Laing said its board intended to unanimously recommend KKR\u2019s offer to its shareholders to take the firm private, adding that it represented a fair and reasonable value for the company.<\/p>\n
KKR has also proposed a \u00a3175m cash injection into John Laing\u2019s pension fund, accompanied by a further \u00a350m in 18 months.<\/p>\n
John Laing\u2019s shares rose by 11% in morning trading on Wednesday, to 402p, just below the offer price.<\/p>\n
John Laing\u2019s chair, Will Samuel, said: \u201cKKR is a strong partner, providing long-term capital and global expertise to accelerate John Laing\u2019s strategy, growing the development capacity and assets of John Laing and creating opportunities for our employees and broader stakeholders.<\/p>\n
\u201cThis is particularly relevant in the current environment where there may be significant opportunities to invest in critical infrastructure which responds to public needs.\u201d<\/p>\n
Tara Davies, a partner and co-head of European infrastructure at KKR, said: \u201cThere is growing global demand for national infrastructure that delivers societal benefit and reflects technological advances and policy priorities across areas such as connectivity, renewable energy and transport.\u201d<\/p>\n