Volkswagen and fleet management firm Fleet Investments have completed the divestment of their 100% shareholding in LeasePlan to a consortium of long-term investors for €3.7bn.

Announced last year, the move sees LeasePlan acquired by LP Group BV, which represents a consortium of long-term responsible investors and includes Dutch pension fund service provider PGGM, Denmark pension fund ATP, GIC, Luxinva SA, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and investment funds managed by TDR Capital LLP.

Vahid Daemi, CEO and chairman of the managing board of LeasePlan, said: “Today marks the start of a new era for LeasePlan. Our new shareholders fully support our growth ambitions and our long-term strategy to provide high-quality and leading-edge driver mobility solutions to our clients worldwide. We have shown our strength as an organisation in seizing opportunities to grow in a changing industry, now managing a fleet of 1.55 million vehicles worldwide. We look forward to continuing to deliver added value to our clients under the new ownership.”

Manjit Dale, founding partner at TDR Capital LLP, on behalf of LP Group BV, said: “We are excited to have completed the acquisition of the market leader in global fleet management and driver mobility. We strongly believe in the future of LeasePlan, a company with an unmatched portfolio of market-leading assets, loyal clients, a highly dedicated employee base and a sound strategy for the future, under highly experienced management. We all look forward to supporting the management team as they continue their focus on growing the business.”

The consortium has made an equity investment of around half the total purchase price with the rest funded by a mandatory convertible note of €480m and an approximately $1.6bn debt facility completed on 16 March 2016 for senior secured notes comprising of euro-denominated senior secured notes due 2021 and US dollar-denominated senior secured notes due 2021. The consortium added that none of the debt raised by the investors has been borrowed by LeasePlan and it added that LeasePlan will not be responsible for the repayment of such debt. It also said it will maintain LeasePlan’s diversified funding strategy going forward supported by its investment grade rating.

LeasePlan also announced changes to its Supervisory Board effective immediately, with the members associated with LeasePlan’s former (indirect) shareholders having resigned, while Ada van der Veer and Herta von Stiegel continue to serve as independent members. The Supervisory Board now consists of seven members, five of which are independent: Jos Streppel (Chairman), Stefan Orlowski, Steven van Schilfgaarde, Herta von Stiegel and Ada van der Veer. Members associated with the Consortium are Manjit Dale and Eric-Jan Vink.