HSBC Gets PE Bids for Train Sale

AMSTERDAM (Reuters) – CVC Capital Partners and a consortium of Morgan Stanley (MS.N) Infrastructure, 3i Infrastructure (3IN.L) and Star Capital have made indicative offers in the 2 billion pound ($3.1 billion) auction of HSBC’s (HSBA.L) rolling stock firm, several people familiar with the matter said.

HSBC’s (0005.HK) rail unit Evershot has a UK fleet of over 4,000 trains and its sale follows the rationale of the divestments of the other two UK train leasing companies, as banks look to raise cash by disposing assets not central to their businesses.

“We put in our offer last week and we are now waiting for HSBC to launch the next round and provide more information on the financing,” a source from one of the bidders said.

CVC has been in the process of raising an infrastructure fund since September 2008 and has so far been using its private equity outfit to go after assets, people familiar with the matter said. [ID:nL3399859]

HSBC is assuming the asset has an enterprise value of 2 billion pounds, based on a staple debt package of 1.7 billion pounds that includes 200 million for capital expenditure, people familiar with the matter have previously told Reuters.

HSBC declined to comment. CVC, 3i and Star Capital declined to comment, while nobody at Morgan Stanley was immediately available for comment. (Reporting by Greg Roumeliotis; Editing by David Holmes) ($1=.6535 Pound)