Chimera

14 March 2018 By Lisa Jucca Follow @LJucca

Italy’s Atlantia and Spanish rival ACS are joining forces in a 17 bln euro bid for highway operator Abertis. The alliance avoids a value-destroying battle. But the structure is tangled and appears highly leveraged. It only makes sense if the victors end up dividing the spoils.

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Italian motorway and airport operator Atlantia and Spanish builder ACS have agreed to take joint control of toll-road operator Abertis Infraestructuras, ending a takeover war for the Spanish highway concessions group, the two companies said in separate statements on March 14.

Both Atlantia and Hochtief, a German builder 72-percent owned by ACS, had previously made separate bids for Abertis.

Under the joint bid, Hochtief will offer 18.36 euros a share in cash, valuing Abertis at about 17 billion euros, excluding treasury shares held by the company. Hochtief will then transfer the acquisition to a newly-created holding company with capital of approximately 7 billion euros.

Atlantia will own 50 percent plus one share of that company, while ACS will own 30 percent and Hochtief will retain a 20 percent stake minus one share. This will allow Atlantia to consolidate Abertis on its balance sheet.

ACS said it would subscribe in full to an issue of 6.43 million shares by Hochtief at 146.4 euros per share. The Spanish group will then sell shares in Hochtief worth up to 2.5 billion euros to Atlantia at the same price, giving the Italian company control of nearly a quarter of Hochtief’s share capital.

Atlantia shares were down 1 percent at 27 euros by 1430 GMT on March 14. ACS shares were up 7 percent at 32.7 euros, while Hochtief shares were up 4 percent at 152.6 euros. Abertis shares were unchanged at 18.6 euros.

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Both Atlantia and Hochtief, a German builder 72-percent owned by ACS, had previously made separate bids for Abertis.

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