HSBC’s train leasing firm set to attract several bids

HSBC is expecting to receive a large number of bids for its train leasing firm, which is worth an estimated £2 billion.

The bidders for HSBC Rail, which is being auctioned through Rothschild and its own advisory team, are likely to be largely private equity and specialist infrastructure firms, who are interested in getting their hands on around a third of the UK’s rolling stock.

One such bidder is a consortium comprising 3i Infrastructure, Morgan Stanley’s infrastructure fund and Star Capital.

One source familiar with the sale says that several bidders are expected to submit bids and that there is no guarantee of a sale if the right price is not met.

The move follows the sale of the two other leading train leasing groups: Angel Trains and the Porterbrook train leasing firm. Angel was sold to a consortium led by Babcock & Brown by Royal Bank of Scotland for £3.6 billion in 2008, while Porterbrook was sold shortly afterwards.

The industry is still suffering as a result of an enquiry by the Competition Commission into concerns that the leasing firms were making too much money amidst possible price collusion.

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