3i Infrastructure plc (LSE:3IN) has begun its new financial year on a solid footing, with the majority of its portfolio companies performing in line with or ahead of expectations and generating £52 million of income during the first quarter. Across the portfolio, businesses including Infinis and Tampnet continue to progress growth initiatives, such as expanding solar generation capacity and securing new connectivity contracts, while SRL and Ionisos have both welcomed new leadership teams.
TCR disposal delivers strong returns and boosts liquidity
The company has completed the sale of airport ground support equipment specialist TCR, receiving proceeds of €1.1 billion. The investment generated an approximate 3.5x money multiple and a gross annual internal rate of return (IRR) of around 19%.
Proceeds from the transaction have been used to fully repay 3i Infrastructure’s Revolving Credit Facility and cancel £300 million of accordion commitments, significantly strengthening the group’s liquidity and financial flexibility.
Lefdal investment expands digital infrastructure portfolio
3i Infrastructure is also progressing its investment in Norway’s Lefdal Mine Datacenter campus, where it expects to invest approximately €300 million to acquire a majority stake.
Additional funding from co-investors will leave the company with control of around 90% of the equity and responsibility for determining the timing of any future exit. Meanwhile, a successful refinancing at Tampnet and a pro-forma cash position of £107 million following the Lefdal investment and dividend payment provide further support for the group’s capital position.
Management remains on track to deliver its targeted 6.3% dividend growth for the 2027 financial year.
Portfolio performance supports long-term strategy
3i Infrastructure continues to benefit from a diversified portfolio of essential infrastructure assets backed by strong profitability and a healthy balance sheet. While recent revenue performance and uneven cash flow remain areas to monitor, the company’s attractive valuation, supported by a relatively low earnings multiple and a solid dividend yield, continues to underpin its investment case. Technical indicators remain broadly neutral.
More about 3i Infrastructure
3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company listed on the London Stock Exchange and structured as an approved UK investment trust. The company invests in infrastructure businesses across sectors including energy, communications and essential services, with the objective of generating sustainable long-term returns for shareholders.
Its portfolio is managed by 3i Investments plc, a subsidiary of 3i Group plc authorised by the UK Financial Conduct Authority. Through disciplined capital allocation and active ownership, 3i Infrastructure focuses on developing high-quality infrastructure assets while maintaining a strong balance sheet and supporting long-term value creation.
Leave a Reply