ADIA & US-based GIP to acquire 72.55% stake in European railcar lessor VTG

By Arya M Nair, Intern Reporter
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VTG Aktiengesellschaft
Representational image

Abu Dhabi Investment Authority (ADIA) and Global Infrastructure Partners (GIP), a US-based infrastructure investment fund, have agreed to jointly acquire a 72.55 percent stake in European railcar lessor, VTG Aktiengesellschaft.

The acquisitions of VTG is from Morgan Stanley Infrastructure Partners (MSIP) and Joachim Herz Stiftung (JHS), who hold shares of 57.55 percent and 15 percent in VTG, respectively.

Headquartered in Germany, VTG is a leading international wagon hire and rail logistics company whose more than 88,500 railcars comprise the largest privately owned fleet in Europe. VTG’s diversified and pan-European operations allow it to offer services to a wide range of customers across the industrial, logistics and railway undertaking sectors.

Khadem AlRemeithi
Khadem AlRemeithi
Executive Director
Infrastructure Department
ADIA

“The growth of Europe’s rail freight market is backed by a modal shift to rail as a key enabler of the decarbonization of supply chains. This investment in VTG aligns with our continued focus on pursuing infrastructure opportunities backed by strong energy transition-related tailwinds. For this transaction we have worked hand-in-hand with GIP, a long-standing partner, to invest in a market-leading business with an established track record.”

Mr. Adebayo Ogunlesi, Chairman and CEO of GIP said that “We are excited by this investment and the opportunity to leverage GIP’s deep industry expertise in the rail sector to build on a market-leading European transport infrastructure platform. This acquisition is aligned with GIP’s energy transition and decarbonization strategy given significant government support for the European rail sector as one of the most cost-effective tools for delivering on net zero emissions targets. We look forward to partnering with ADIA to develop this unique platform.”

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