The three investment funds that bought Eversholt in 2010, 3i, Morgan Stanley, Star Capital, have realised a huge profit on their purchase. With debt restructuring it comes in at around ^700 million. They picked up an absolute bargain when HSBC were forced by HMG to have a fire sale due to the banking crisis. Just think what lovely shiny new rolling stock that ^700 million could have bought. But then the investment funds were only out to make a quick buck. Never any intention on their part of a ling term strategy to invest and remain in charge. Trebles all round.
Lets just hope the new owner has a long term plan for the business. With his links to China we might finally see some competitively priced rolling stock heading to the
UK▸ . Hopefully not procured in the same way as
IEP▸ was.
I don't understand why you are getting so hot under the collar. Investment funds are in business to make money and if HSBC screwed up their business then you can't blame the investment funds for that. If they hadn't bought the business then what do you think would have happened to it? In all likelihood it would have been dismembered and sold off piecemeal. If this were to be the case then the ^700 million would have been virtual money.
The ^700 million would _never_ have bought any trains - unless the income from these trains covered at least the opportunity cost of the investment.
Businesses are bought and sold on the basis of their future projects - not what has happened in the past. That is history. Mr Li obviously thinks that the business has a future - possibly also in other markets - and is therefore worth what has been paid for it. As for Mr Li's long term plans - well, he is 86 and his successors may well have different ideas.
