Merger to Create Giant Operator of Toll Roads
By BLOOMBERG NEWS
Abertis Infraestructuras, Spain's largest toll-road operator, said yesterday that it had agreed to buy Autostrade of Italy for stock worth 12 billion euros, or $14.8 billion, to form the world's biggest private operator of toll roads.
Abertis offered one share for each of Autostrade's 571.7 million shares, the companies said. Autostrade shareholders will also receive a special dividend of 3.75 euros a share. Abertis shares closed at 20.94 euros on Friday.
Governments in Europe and the United States are selling roads and airports as competition from banks and construction companies to buy them is increasing. Abertis and Autostrade have recently lost bids for toll roads to companies like Macquarie Bank and the Spanish builder Grupo Ferrovial. With greater earnings, the new company may be able to make higher offers for projects.
The new company will operate 4,172 miles of highways in Europe and the United States, including the road connecting Milan and Naples and the Dulles Greenway toll road in Virginia. It will operate 13 airports in cities including London, Orlando and Stockholm. Combined, the companies have a market value of about 25 billion euros.
The chief executive of Abertis, Salvador Alemany, will be chief executive of the combined company, which will have its headquarters in Barcelona. Its 23-member board of directors will have 11 representatives from Abertis and the same number from Autostrade. It will have a co-chairman and co-vice chairman from each side.
The agreement includes a plan to invest 15 billion euros, of which 11 billion euros will be used in Italy.
The acquisition occurs amid a surge in takeovers of infrastructure companies. DP World of Dubai bought London-based Peninsular & Oriental Steam Navigation for $6.8 billion earlier this year. Ferrovial is bidding 8.75 billion pounds, or $15.6 billion, for BAA, the world's largest operator of airports. Associated British Ports Holdings last month rejected a $3.8 billion bid led by Goldman Sachs.
The combined value of an Abertis share at its last closing price and the dividend of 3.75 euros that will be paid to Autostrade investors totals 24.69 euros, 7.4 percent greater than Autostrade's closing price on Friday of 22.98 euros.
Autostrade will take on debt to help finance the 2.1 billion-euro extraordinary dividend to its shareholders and to repurchase stock from shareholders who do not want to take part in the merged company.
The Benetton family, which controls Autostrade through a holding company, is set to receive about 600 million euros from the extraordinary dividend.
nytimes.com |
