May 27, 2020

Abertis lands in Mexico with the purchase of the Western Highway Network

Abertis disembark in a new market: Mexico. The Spanish concessionaire and a subsidiary of the international institutional investor GIC, an investment firm that manages Singapore's foreign reserves, they have reached an agreement with Goldman Sachs Infrastructure Partners (GSIP) and its subsidiaries to acquire the 70% stake that the fund owns in Red de Carreteras de Occidente (RCO), one of the largest highway operators in Mexico, as reported by the company in a statement.

The operation will be carried out through a consortium formed by Abertis (which will control the company) and GIC. The remaining 30% of RCO is currently held by investors and managers of Mexican pension funds. Abertis will acquire 50.1% of RCO from GSIP for an amount of about 1,500 million euros, subject to the approval of regulatory authorities and other customary conditions in this type of operations. The total Enterprise Value (EV) of the Mexican operator is approximately 5,000 million euros.

Abertis will finance the operation through a combination of available cash and existing loans. It is estimated that the closing of the agreement will occur during the first half of 2020 through a public offer. As a result of the takeover bid, Abertis and GIC will increase their participation by a maximum of 6%. After the closing of the purchase, the RCO figures will consolidate globally in the Abertis Group accounts.

RCO has 100% participation in five dealerships that manage 8 highways and total 876 kilometers in total. As explained by Abertis, the RCO motorway network is one of the most important in Mexico and forms "the backbone of the communication routes in the central-western region of the country, connecting the main industrial corridor of the country (El Bajío) and its two largest cities (Mexico City and Guadalajara). "

With the operation, Abertis adds about 900 kilometers to its network, which thus reaches about 9,500 kilometers of direct management highways. In addition, it contributes to the extension of the average life of the company's concession portfolio. In addition, it involves its landing in the Mexican highway business and consolidates Abertis's presence as a highway operator in America, where it already has a strong presence in Chile, Brazil, Argentina and Puerto Rico.

. (tagsToTranslate) roberto l. vargas

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