Vinci buys Invepar’s road concession in Peru

The French company will pay the Brazilian developer €1.5bn for the Linea Amarilla concession, which expires in November 2049.

Vinci Highways, a subsidiary of France-based Vinci Concessions, will acquire a 100 percent stake in LAMSAC, the concessionaire of the Linea Amarilla toll road in the Peruvian capital as well as PEX, the electronic toll collection operator for PEN 5.5 billion ($1.7 billion; €1.5 billion).

The concession, which expires in November 2049, entails building, operating and maintaining the 25km stretch of highway, which in 2015 had an average daily traffic volume of 134,000 vehicles.

Vinci expects traffic volume to grow further upon completion of a new section that is under construction.

“This transaction is part of Vinci Concessions' strategy of expansion in an area with strong growth potential,” the French company said in a statement, adding that it is also in line with its plans to expand in Latin America.

For Invepar, the reason for deciding to sell the asset is less clear. One of the company's key shareholders – OAS, one of the major Brazilian heavy construction companies embroiled in the country's corruption scandal – filed for bankruptcy protection last year. Part of the restructuring plan involves OAS transferring its 24.5 percent stake to its creditors, represented by an entity called SPE Credores.

This latest transaction, expected to close by year-end, comes on the heels of another Brazilian construction company selling a stake in a Peruvian toll road . This past June, Odebrecht, which is also involved in “Operation Car Wash”, sold a 57 percent stake in Rutas de Lima, a 115km toll road that comprises three main routes to and from the Peruvian capital, to Canadian fund manager Brookfield Infrastructure .

Brookfield had also been considering acquiring OAS' stake in Invepar, but in early February announced that it was withdrawing its bid “as we could not reach an acceptable agreement with various stakeholders”.