HSBC Puts Train Unit On The Block

AMSTERDAM (Reuters) – HSBC (HSBA.L) has launched the 2 billion pound ($3.1 billion) sale of its British rolling stock leasing company, with financial investors seen as the most likely buyers, several people familiar with the matter said.

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, two people close to the deal said on Wednesday.

“HSBC expects the sale to be done at book value, or slightly at a premium to the book value,” another source familiar with the matter said.

The same source said HSBC sent out information to potential bidders this week expecting expressions of interest in late March, with final offers expected to be sought about a month after that.

Infrastructure funds of Macquarie (MQG.AX) and JPMorgan (JPM.N) have already teamed up to bid for the business while investment firm Star Capital is also interested, two people familiar with the matter said. An HSBC spokesman declined to comment. A Macquarie spokeswoman declined to comment while JPMorgan and Star Capital were not available to comment.

(Reporting by Greg Roumeliotis; Editing by Dan Lalor) ($1 = 0.6482 pound)