Abertis/Atlantia management to meet as early as Wednesday 3 May; Abertis acquires additional 22.52% stake in A4 Holding for EUR 125m
Atlantia [BIT:ATL] managers will meet their Abertis Infraestructuras S.A., [ETR:ALV] counterparts as early as Wednesday 3 May to discuss a tie up, a newswire reported, citing two sources privy to the process.
A deal could be announced before the end of May, Reuters said. The two companies declined to comment, the item noted.
Atlantia is already discussing financing with banks and could offer about EUR 16bn in a cash and paper bid for Abertis, the report added.
Meanwhile Abertis continues to invest in Italian assets and today (3 May) announced the following:
SIGNIFICANT EVENT
Abertis [BME:ABE] has reached an agreement to acquire an additional 22.52% stake in A4 Holding from minority shareholders for a total EUR 125m of which EUR 36m will be paid by the end of January 2018 and the rest by the end of July 2017. This price represents a 10% discount vs. the price agreed to acquire Abertis’ initial 51.4% stake and is therefore IRR accretive.
As a result of the transaction, Abertis will control 85.36% of A4 Holding, thus reinforcing its controlling stake in a known asset with an attractive risk-reward profile.
From a financial perspective, the acquisition will have a positive impact on Abertis’ Net Profit as a result of lower minorities, and allow the company to have greater access to the dividend stream from Italy.
A4 Holding currently manages 235 kilometers of toll roads in the region of Veneto, one of Italy's most prosperous areas, with one of the country's highest levels of GDP and percapita income. It is a strategic geographical area, forming part of the corridor connecting Italy's industrial North to Europe's economic center.