CKI Mulls £4 Billion Sale of Eversholt Rail Amid UK Nationalisation Debate
Key Ideas
  • CK Infrastructure explores potential £4 billion sale of Eversholt Rail, a major UK rolling stock leasing company.
  • Eversholt Rail transitioned to green technology under CKI, investing in hydrogen-powered trains initially, then shifting to battery-only trains.
  • Sale of Eversholt Rail may indicate CKI's strategic shift in the UK market amidst uncertainties of nationalisation and government policies.
  • The UK government's plans for nationalising rail services create uncertainty for private operators and may impact rolling stock leasing companies like Eversholt Rail.
CK Infrastructure, listed in Hong Kong, is considering selling Eversholt Rail, a leading rolling stock leasing company in the UK, with a potential valuation of £4 billion. The company, acquired by CKI in 2015, has undergone a green transition under CKI's ownership. Initially, Eversholt partnered with Alstom to develop hydrogen-powered trains but later pivoted to battery-only trains. While the hydrogen train project was canceled in 2022, Eversholt has invested in Revolution Very Light Rail vehicles for future passenger service. The potential sale of Eversholt Rail aligns with CKI's evaluation of its UK investments, representing 36% of its net income. This move comes amidst uncertainties in the UK rail market, including the government's plans for nationalisation through Great British Railways. The impact of nationalisation on private operators like rolling stock lessors remains unclear, leading to speculation about potential changes in the market dynamics and profit margins. The sale of Eversholt Rail signals a strategic shift for CKI in the UK market, reflecting broader economic and policy uncertainties in the transportation sector.
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