OHL mulls IPO of concessions unit

The Spanish developer is considering listing up to 30 percent of its concessions business, which was responsible for 76% of the group’s EBITDA in its 2011 half yearly results. The concessions unit manages 28 concessions, including more than 4,400km of highways, mostly in Latin America.

Spanish infrastructure developer Obrascon Huarte Lain (OHL) is considering a listing of up to 30 percent of its concessions unit, OHL Concesiones, the company announced in a statement to Spain’s competition authority last week.

OHL said it will begin “preliminary studies to examine the listing of subsidiary OHL Concesiones, which would involve offering investors up to 30 percent of its capital through a mixed sale of shares by OHL and a capital increase by OHL Concesiones”. OHL added the listing is not “imminent”, with a final decision dependent on how the stock markets are performing.

OHL Concesiones manages 28 concessions, the majority (23) of which are toll road concessions spanning 4,417 kilometres across Brazil, Mexico, Chile, Peru and Spain. The concessions unit also operates one airport, two ports and two railway concessions.

In a recent results presentation for the first half of 2011, OHL said that its concessions business was responsible for 76 percent of the group’s earnings before interest, tax, depreciation and amortisation (EBITDA) amounting to €375.5 million. 

The concessions division has grown its sales by 17.4 percent compared to the first half of 2010 and has increased its EBITDA by 20.7 percent. OHL attributes the growth to the “positive trend in traffic flows and rates of our concessions”. The opening of several new toll road stretches also helped to boost the concessions unit’s results, OHL said.

OHL Concesiones’ “long-term order book at June 30 2011 reached €75.7 billion, representing 9.7 percent growth with  respect to  the close of accounts at the end of June 2010,” OHL added.