APG buys Arcus’ Alpha Trains stake

20 December 2019 - 12:00 am UTC

APG continues its spree of acquisitions, buying a 41.1% stake in Alpha Trains while the management rights of the holding are retained by the seller, Arcus Infrastructure Partners.

Arcus said on Friday (20 December) that it has sold the stake in the European train lessor, which owns 800 passenger trains and locomotives, in a bilateral trade for an undisclosed amount.

The sale price was not disclosed. Alpha Trains, which leases its trains to rail companies in Germany, France and other European countries, reported annual EBITDA of EUR 195.6m in 2018, down from EUR 202.67m the previous year. 

The sale followed revelations earlier in the year that AMP Capital and PSP Investments, which own 28% and 20.9% respectively in Alpha, were looking to exercise their pre-emption rights over Arcus’ stake.

A source close said that Arcus’s shareholder agreement gave it rights to sell its stake without triggering the preemption rights. A source familiar said that APG is a limited partner in Arcus’ first fund. Arcus is currently fundraising for its second infrastructure fund.

APG, which was advised on the deal by Deutsche Bank, holds a 22.5% stake in French telecoms and broadcast towers business TDF, but it is owned through Arcus Infrastructure managed vehicles Arcus Tivana Investor vehicles one and two.

In 2015, AMP and PSP exercised preemption rights to buy a 43.4% stake in Angel Trains from Arcus in an all-equity deal. 

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