Ferrovial has reached an agreement, through its toll-road subsidiary Cintra, to sell its 49 per cent stake in the Norte Litoral availability-based PPP road and its 48 per cent stake in the Via do Infante availability-based PPP road – both of which are in Portugal – to DIF Infrastructure VI, a fund managed by DIF Capital Partners, for €171 million.
As part of the agreement Cintra will hold a management contract for both assets. Closing of the transaction is expected once all the necessary approvals have been received from Portuguese authorities and financing institutions.
The company will continue to hold its stake in the Azores Highway. In 2016, DIF Infraestructure IV, another fund managed by DIF Capital Partners, took a 51 per cent stake in the Norte Litoral and a 49 per cent stake in the Via do Infante availability-based PPP roads located in Porto and Algarve. These concessions were awarded to Cintra in the years 2001 and 2000, respectively.
The Norte Litoral concessional period will expire in 2031, while the Via do Infante concession will run until 2030.
Fernando Moreno, partner at DIF Capital Partners, said: “We are very pleased with the addition of these critical and robust road assets to the DIF VI portfolio. Given their structure, the projects have continued to demonstrate strong performance despite the Covid-19 crisis.”
Ferrovial is led by CEO Ignacio Madridejos.
Cuatrecasas advised Ferrovial on the deal. The Cuatrecasas team was coordinated by Mariana Norton dos Reis, M&A partner, and included counsel Telma Carvalho and associates Catarina Lins Aguiar and Rodrigo Lobo Machado from the M&A group. Banking & finance counsel Margarida Leal de Oliveira, public law partner Lourenço Vilhena de Freitas and anti-trust partner Pedro Marques Bom were also part of the team.
Cintra is one of the world’s leading private sector developers of transportation infrastructure in terms of number of projects and volume of investment. It currently manages approximately 1,474 kilometers of toll roads in 25 concessions in Canada, the US, Europe, Australia and Colombia.
Ferrovial is a member of Spain's blue-chip IBEX 35 index and is also included in the Dow Jones Sustainability Index and FTSE4Good.