HSBC in £1.7bn trains sale
HSBC could be close to finalising a deal to sell its British rolling stock leasing business for £1.7bn to a consortium of City investors.
Morgan Stanley Infrastructure, 3i and Star Capital are thought to have teamed up to make a bid for the business, which could see the transfer of one-third of the UK’s trains – or 4,000 – to its ownership.
It is understood that the consortium has been handed a period of exclusivity to put the finishing touches on the deal, with hopes that it could be signed by the end of the month.
HSBC currently owns a number of important fleets, including the Intercity 225 trains that run between London and Edinburgh and the Javelin commuter trains that travel between Kent and the capital.
The move by the bank to shed its train assets follows moves by rivals Royal Bank of Scotland, which sold Angel Trains in 2008 for £3.5bn and Abbey National, now owned by Santander, which sold Porterbrook for £2bn the same year.
HSBC and 3i declined to comment on the sale.
The Intercity rolling-stock was at the center piece of a debate after transport secretary Philip Hammond after he said he would shelve updating the trains until October.