Astaldi to separate concessions division

Italian construction company Astaldi said during the presentation of its 2009 results that it plans to place its concessions in a separate company by the end of June this year. The plan is to then open up the concessions unit to outside investors once the business matures.

Astaldi, Italy’s second-largest construction company, has announced that it intends to place its concessions business in a separate company by the end of June 2010.

Chief executive Stefano Cerri said during the presentation of the company’s results for 2009 that Astaldi then plans to open its new concessions unit to outside investors once the business matures. For the time being he reassured investors by saying that expanding its concessions business would be done through the company’s cash flows and not through a capital increase.

Cerri had previously told Reuters in an interview that infrastructure funds had shown interest in buying into a separate concessions unit.

Astaldi’s nascent concessions portfolio includes several hospitals in Italy, a car park in Bologna, the concession for a Milan metro line, a road build-operate-transfer contract in Turkey, and the Cachapoal hydroelectric concession in Chile.