Cintra, the toll road subsidiary of Spain’s Ferrovial, has agreed to sell a 60 percent stake in its Chilean business to Colombian infrastructure group ISA for €209 million.
Under the agreement, ISA holds a put option and Cintra a call option on the remaining 40 percent of Cintra Chile. The company owns majority stakes in five concessions that form part of Chile’s Ruta 5, the country’s main north-south road artery. The concessions’ zone of influence covers 50 percent of Chile’s population and gross domestic product (GDP).
Cintra Chile is the country’s largest toll road operator, managing over 907 kilometres of roads. In the first nine months of 2009, Cintra’s Chilean business generated €147 million in revenues and €102 million in earnings before interest, tax, depreciation and amortisation (EBITDA).
The sale, which is part of Ferrovial’s strategy of selling mature assets in order to raise money for new projects, is expected to net the company some €250 million after-tax. In 2009, Cintra also sold its car parks division to Portuguese company Emparque for €451 million while Ferrovial sold London’s Gatwick airport to Global Infrastructure Partners for €1.6 billion.
For ISA, majority-owned by the Colombian government and predominantly an energy investor, the purchase is part of its stated objective of deriving 20 percent of its revenues from other businesses other than electricity transportation by 2016. By that date, the company also expects 80 percent of its revenues to be generated outside Colombia. ISA generated $1.3 billion in revenues during the first nine months of 2009.