RBS AGREES TO SELL ANGEL TRAINS TO A CONSORTIUM ADVISED BY BABCOCK & BROWN
13 June 2008
The Royal Bank of Scotland Group plc ("RBS") is pleased to announce that it has signed a definitive agreement regarding the sale of Angel Trains Group ("Angel Trains") to a consortium advised by Babcock & Brown (the "Consortium”). The transaction values Angel Trains at an enterprise value of £3.6bn. The sale forms part of RBS’ strategy of focusing resource on its core domestic and international banking businesses.
Completion is expected to take place before the end of 2008.
RBS was advised by Lazard & Co., Limited.
ENQUIRIES:
RBS,
Richard O’Connor, Head of Investor Relations
+44 (0) 20 7672 1758
+44 (0) 7909 873 681
Carolyn McAdam, Group Head of Media Relations
+ 44 (0) 131 523 2055
+ 44 (0) 7796 274 968
Lazard & Co., Limited,
Tel: +44 (0)20 7187 2000
William Rucker
Richard Shaw
Oliver Ives
Appendix
Angel Trains
Angel Trains is the largest of the three rolling stock leasing companies ("ROSCOs") in the UK and also enjoys a strong presence in the growing passenger train and freight locomotive leasing markets across Europe. As an operating lessor, Angel Trains leases a diverse range of rolling stock, including regional, commuter and high speed passenger trains, and freight locomotives, to train operators. It also offers financing and project management for the procurement of new rolling stock, as well as management of heavy maintenance, refurbishment and modifications throughout the whole life of rolling stock assets.
Angel Trains was originally formed by the UK Government in 1994 as part of the privatisation of British Rail and was subsequently acquired by RBS in 1997. Angel Trains currently owns a total fleet of over 5,000 passenger trains and freight locomotives.
The Consortium
The Consortium comprises global infrastructure investment funds including the Babcock & Brown European Infrastructure Fund, AMP Capital Investors, Deutsche Bank AG and funds advised by Access Capital Advisers. Each of the members of the Consortium is an experienced long-term investor in attractive infrastructure and associated businesses which generate long-term stable cash flows.