The Royal Bank of Scotland has announced the sale of its Angel Trains unit in a £3.6 billion deal to a Babcock and Brown led consortium. The sale is the latest sign of RBS’ intention to narrow its portfolio to focus on its core domestic and international banking businesses. The consortium, which includes AMP Capital Investors and the Deutsche Bank, has arranged a long term finance deal for the deal of more than £2.8 billion.
Angel Trains currently operate in 12 European countries, providing a total of 430 passenger train vehicles and 520 locomotives to various train operates. The purchase will therefore enable Babcock and Brown to expand their rail projects globally. Babcock and Brown’s initial focus is likely to be in Britain given that 95 per cent of Angel Trains’ passenger trains and 54 per cent of their passenger trains operate in Britain.
RBS has already raised £12 billion through Europe’s largest ever rights issue, though its share price was down by 0.1 per cent at 228.75 pence at the time of the announcement on Friday. The bank has also put its insurance businesses up for sale.
Royal Bank of Scotland Sells Angel Trains Unit
Royal Bank of Scotland Sells Angel Trains Unit
Wed, 18 Jun 2008
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