Bidders shortlisted in KKR’s ELL auction

11 November 2019 - 12:00 am UTC

KKR Infrastructure has shortlisted bidders including PGGM in its sale of European Locomotive Leasing (ELL), sources close to the process said.

Dutch pension fund PGGM submitted a non-binding offer for ELL by last Monday’s (4 November) deadline and was shortlisted by KKR at the end of the week, said a source close to the bidder. The Dutch pension fund, which previously owned a stake in UK rosco Eversholt Rail until it was sold in 2015 to CKI, is “open” to joining a larger group later in the sale process, the source added. PGGM declined to comment.

GIC-backed Railpool, which also submitted an NBO, was not shortlisted by ELL, said a source close to the lessor.

A team of MEAG, the asset management arm of insurer Munich Re, and private equity firm Partners Group also submitted an NBO, according to sister title Mergermarket, but it is not known if the team was shortlisted. A preferred bidder is scheduled to be chosen before the end of the year. 

OMERS has also been linked to the sale by two sources close, although again it is not known if it submitted an NBO or was shortlisted.

Vienna-headquartered ELL leases around 130 Siemens Vectron electric locomotives to freight and passenger rail operators across Europe.

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