Eurotunnel gets offer for GB Railfreight

The Eurotunnel Group has received a binding and irrevocable offer from EQT Infrastructure II for the potential acquisition of GB Railfreight, the third largest rail freight operator in the UK.

Eurotunnel says the offer will shortly be presented to the group’s staff representative bodies for consultation.

It says the transaction would give a new direction to GBRf, which was created in 1999, based on the quality and commitment to development of the EQT group.

GET acquired GBRf in 2010 for £25 million (at an exchange rate of £1=€1.17) and has more than doubled its activities, leading to forecast revenues of approximately £125 million whilst at the same time significantly improving its profitability.

The internal rate of return for the same period, from 2010 to 2016, estimated at the time of the potential sale, is just above 28%.