Hong Kong-based CK Infrastructure Holdings Ltd. (CKI) is exploring the sale of Eversholt Rail, one of the UK’s leading rail companies. The sale could be worth up to £4 billion (about $4,9 billion) and would suggest the company remains a major asset. CKI, along with Rothschild & Co., is evaluating its options for the sale of Eversholt Rail, but no final decision has yet been made. If market conditions are not favourable or bids do not meet expectations, the company could decide to keep the asset.
Sale of Eversholt Rail: Impact on UK Rail Market
Eversholt Rail is a major player in the UK rail sector, operating a fleet of 19 passenger train groups and freight locomotives. The company demonstrates its commitment to sustainability and innovation with its electric vehicles, making it attractive to major investors such as infrastructure investors and pension funds. More than half of the company’s 2.715 vehicles are electric, contributing to green transport targets.
If the sale goes through, CKI’s influence in the UK infrastructure market could change. In 2023, 36% of the company’s net revenue was derived from UK operations. With this sale, CKI’s presence in the region could mark a significant shift in future investments.
The Strategic Importance of Sales
CKI’s acquisition of Eversholt Rail for £2015 billion in 2,5 established the company as a strong player in the UK rail sector. Eversholt Rail was established following the privatisation of British Rail and provides regional and high-speed trains on long-term leases. Its focus on electric trains strengthens the company’s commitment to environmentally friendly targets and sustainability vision.
CKI’s exploration of the sale of Eversholt Rail could set an important precedent for future investment in the UK infrastructure market. Market watchers say a deal of this size could impact valuations and shape investor sentiment in the sector. CKI is conducting a careful due diligence process to ensure the best outcome in global market conditions.
