RMweb Gold beast66606 Posted October 18, 2016 RMweb Gold Share Posted October 18, 2016 http://www.eurotunnelgroup.com/uploadedFiles/assets-uk/Media/Press-Releases/2016-Press-Release/161018-Eurotunnel-launches-the-sale-of-GB-Railfreight.pdf Link to post Share on other sites More sharing options...
Mark Saunders Posted October 18, 2016 Share Posted October 18, 2016 http://www.eurotunnelgroup.com/uploadedFiles/assets-uk/Media/Press-Releases/2016-Press-Release/161018-Eurotunnel-launches-the-sale-of-GB-Railfreight.pdf On top of the news from DB Cargo about redundancies! Link to post Share on other sites More sharing options...
Clearwater Posted October 18, 2016 Share Posted October 18, 2016 Interesting however that looks like they've sold it to EQT subject to certain approvals (that they expect to get - I think this is due to the employee consultation process under French law albeit that's not my area of expertise). EQT is an infrastructure fund manager albeit one who looks at the riskier end of infra investments. Interesting to note eurotunnel has made a 28% irr - that's a pretty stonking return by any standards. Perhaps eurotunnel feel the market for uk freight has peaked and they're cashing out at what the board think locks in a good return for them. David https://www.eqt.se/About-EQT/ https://www.eqt.se/news/Press-Releases/2016/eqt-infrastructure-ii-has-submitted-an-irrevocable-offer-to-acquire-gb-railfreight/ Link to post Share on other sites More sharing options...
RMweb Premium newbryford Posted October 18, 2016 RMweb Premium Share Posted October 18, 2016 Reads as more "sold" than "up for sale" Cheers, Mick Link to post Share on other sites More sharing options...
RMweb Premium melmerby Posted October 18, 2016 RMweb Premium Share Posted October 18, 2016 Reads as more "sold" than "up for sale" Cheers, Mick Schucks! And I was looking forward to bagging some cheap S/H 66s! Keith Link to post Share on other sites More sharing options...
DavidB-AU Posted October 18, 2016 Share Posted October 18, 2016 More. http://www.railwaygazette.com/news/freight/single-view/view/eqt-submits-offer-to-buy-gb-railfreight.html Link to post Share on other sites More sharing options...
RMweb Gold TheSignalEngineer Posted October 19, 2016 RMweb Gold Share Posted October 19, 2016 More. http://www.railwaygazette.com/news/freight/single-view/view/eqt-submits-offer-to-buy-gb-railfreight.html "EQT Infrastructure II invests in medium-sized companies that have the prospect of strong, reliable, protected cash flows and significant opportunities for value creation" Do they have some assets worth stripping? Link to post Share on other sites More sharing options...
Clearwater Posted October 19, 2016 Share Posted October 19, 2016 "EQT Infrastructure II invests in medium-sized companies that have the prospect of strong, reliable, protected cash flows and significant opportunities for value creation" Do they have some assets worth stripping? That's not what they mean. Within the infrastructure investor universe, there is a spectrum of risk appetite from some sovereign wealth or direct pension investors who are looking for absolute stability in yields above anything else and who will bid as high single digit returns for companies. Those investors are using their own resources to invest. On the other hand, firms like eqt are managing third party capital - e.g. Those large local authority pension funds who do not have the scale or staff to invest directly. They do this for a fee. Therefore, in order to be able to pay ultimate investors and themselves , a managed fund needs to target a higher return. As such, they look for opportunities where they can grow the business rather than manage a largely steady state model. I reckon they'll be looking for a 12-15% irr here. I'm not saying they won't lol for assets within gbrf that they can sell - of course they will. However, they'll be looking to dispose of assets that don't contribute to the bottom line or can be valued higher by other parties. On private sales, arbitrage opportunities can be hard to find for obvious reasons. Non-performing assets might be something that is lower margin or higher risk than the profile they want. Ultimately eqt will be looking to sell in 5-7 years and willl be looking to roughly double their equity investment. They can do that through ebitda growth or in the valuation multiple applied to the business. (Possibly through refinancing too). If they strip the business, a fairly pejorative term in my view, they may struggle to achieve their own objectives. Obviously there will be other factors that come into their strategi analysis: wouldn't surprise me if they look to buy either parts of the dbs business or some of the NR assets that may be coming for sale David Link to post Share on other sites More sharing options...
RMweb Premium Gwiwer Posted October 19, 2016 RMweb Premium Share Posted October 19, 2016 Opposite sides of the coin if you ask me. DBC has lost massive amounts of traffic in no small measure through the almost total cessation of coal movement. GBRf has appeared to the lay observer to have been on the up winning some of the (non-coal) traffic DBC has lost. Either way an interesting time, and not necessarily in a good way, for anyone with any connection to British rail freight be they drivers, maintenance crews, managers or, as important as anyone, customers and potential customers. Link to post Share on other sites More sharing options...
eastwestdivide Posted October 19, 2016 Share Posted October 19, 2016 From the Railway Gazette article linked above, Eurotunnel's statement (my bold) Groupe Eurotunnel said the sale of GBRf would provide additional liquidity to develop its core infrastructure and transport business, particularly the ElecLink electrical interconnector project Will the interconnector help supply the UK with electricity no longer made from coal hauled by "transport businesses"? Link to post Share on other sites More sharing options...
Ron Ron Ron Posted October 19, 2016 Share Posted October 19, 2016 What do we know? GBRf is a very successful company, owned by French company Europorte (a subsidiary of Groupe Eurotunnel). Groupe Eurotunnel appear to be looking to raise funds from the sale to help finance other areas of their business, most notably the ElecLink project, mentioned in their press release. According to their own web site, the prospective new owners EQT, were founded in Sweden, but are a multinational company, with investors from all over Europe, North America and the wider world. When the deal is completed, they will be the 4th owners of GBRf. Other FOC's have changed hands (Freightliner - 3 times?, what was EWS - 3 owners). Lots of this goes on in other areas of business and commerce. Not a lot to see here AFAICS, except for the (hopefully temporary) uncertainty it may cause the employees and their families. . Link to post Share on other sites More sharing options...
RMweb Gold Revolution Ben Posted October 19, 2016 RMweb Gold Share Posted October 19, 2016 Hello all, It appears that EQT tend to run their rail opertions under the Hector Rail brand. Once the deal is concluded and they launch the brand here then the upcoming Revolution/Rapido class 92 model will reflect this option... cheers Ben A. Link to post Share on other sites More sharing options...
Ron Ron Ron Posted October 19, 2016 Share Posted October 19, 2016 ....Will the interconnector help supply the UK with electricity no longer made from coal hauled by "transport businesses"? Yes. It isn't any secret that the UK has a problem in being able to meet its future electrical energy needs. We already buy electricity from France via a cross channel link. The plan is to buy more from them. Coal fired power stations are being closed down under international agreement, including agreement both under the EU and in a wider global context. I don't think many would argue with the wider aims of this policy, although the haste in which it has occurred in the UK does raise some questions (domestic UK government policy). With the closure of British mines, the coal is/was all imported anyway. I could be flippant and say they've cut out the middle man in the process, i.e. the ports, transportation (rail) and power generation, but that does mean lots of jobs will disappear along the way. Back to the topic of GBRf......... . Link to post Share on other sites More sharing options...
Ron Ron Ron Posted October 19, 2016 Share Posted October 19, 2016 It appears that EQT tend to run their rail opertions under the Hector Rail brand. Maybe the logo should have a bit more "Hector" in it then..... Link to post Share on other sites More sharing options...
Classsix T Posted October 19, 2016 Share Posted October 19, 2016 You should see the proposed staff uniform! C6T. Link to post Share on other sites More sharing options...
royaloak Posted October 19, 2016 Share Posted October 19, 2016 You should see the proposed staff uniform! The_Swedish_Chef.jpg C6T. Looks better quality and fit than ours, which is shi um rubbish! Link to post Share on other sites More sharing options...
RMweb Gold TheSignalEngineer Posted October 19, 2016 RMweb Gold Share Posted October 19, 2016 He's just found out that the coal-fired power stations have all closed. Link to post Share on other sites More sharing options...
Talltim Posted October 19, 2016 Share Posted October 19, 2016 I like the Hector Rail livery, in fact thinking about it I like pretty much all the mainland freight company liveries more than our home grown ones! Link to post Share on other sites More sharing options...
298 Posted October 19, 2016 Share Posted October 19, 2016 No. Hector was always 86223 (or 26048). Link to post Share on other sites More sharing options...
RMweb Premium Reorte Posted October 19, 2016 RMweb Premium Share Posted October 19, 2016 I like the Hector Rail livery, in fact thinking about it I like pretty much all the mainland freight company liveries more than our home grown ones! Shades of Railfreight Grey about it, which I thought was a smart livery. Of the homegrown ones I quite like DRS. Link to post Share on other sites More sharing options...
Classsix T Posted October 19, 2016 Share Posted October 19, 2016 He's just found out that the coal-fired power stations have all closed. Clearly the result of a rough shunt betwixt an ICI hopper and a Walrus. C6T. Link to post Share on other sites More sharing options...
RMweb Gold adb968008 Posted October 19, 2016 RMweb Gold Share Posted October 19, 2016 "EQT Infrastructure II invests in medium-sized companies that have the prospect of strong, reliable, protected cash flows and significant opportunities for value creation" Do they have some assets worth stripping? or gaining access to the UK market before Brexit happens and as the £ has put a 20% discount on all UK Assets. That said, given EU rules of importing non-EU manufacturered locomotives with new emissions standards a few years back.. they could sweep up the newer fleet and move them to Europe speculatively, and bring them back later and claim export tax back from the EU, would UK tax be due as it's been paid already ? - thats an interesting one ! Link to post Share on other sites More sharing options...
Talltim Posted October 19, 2016 Share Posted October 19, 2016 Schucks! And I was looking forward to bagging some cheap S/H 66s! Keith You might have missed out on GBRF, but the Florida East Coast is for sale http://www.bloomberg.com/news/articles/2016-10-13/fortress-said-to-explore-sale-of-florida-east-coast-railway Link to post Share on other sites More sharing options...
Classsix T Posted October 19, 2016 Share Posted October 19, 2016 or gaining access to the UK market before Brexit happens and as the £ has put a 20% discount on all UK Assets. That said, given EU rules of importing non-EU manufacturered locomotives with new emissions standards a few years back.. they could sweep up the newer fleet and move them to Europe speculatively, and bring them back later and claim export tax back from the EU, would UK tax be due as it's been paid already ? - thats an interesting one ! My head hurts...! C6T. Link to post Share on other sites More sharing options...
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