PFI Infrastructure Co., an investment company specializing in construction projects, agreed to buy a 49% stake in German builder Hochtief AG's schools unit for £9.2 million ($18.4 million).
PFI Infrastructure Co., based in Douglas, Isle Of Man, entered into a call option agreement to purchase the stake in Hochtief PPP Schools Capital Ltd., exercisable next December, it said yesterday. The Hochtief unit holds stakes in six school-construction projects in the UK and Ireland, all of them private finance initiatives, a type of contract in which governments encourage businesses to fund and build state infrastructure in return for lucrative management agreements that may span three decades.
„We are pleased to have been chosen to be the long-term financial investment partner to Hochtief for the development of its education PPP business and see great potential for future business together,” said Jo Elliot, CEO of Quayle Munro Plc, which manages PFI Infrastructure. Shares of PFI rose 10.5 pence, or 5%, to 222.5 pence, the sharpest gain since December 9, 2005, giving a market value of £112 million.
Essen, Germany-based Hochtief AG was little changed. The investment company said it committed a further £3.64 million as its share of deferred equity subscriptions due over the next three years to three of the six projects. PFI Infrastructure also spent £7.4 million on increasing stakes in existing projects at two hospitals in Scotland and one in England, yesterday's statement said. (Bloomberg)