Abertis suitor ACS proposes merger with Hochtief - reported rumour (translated)
11 SEP 2017
Abertis [BME:ABE] suitor Spanish construction group ACS [BME:ACS] has offered at a meeting with investors in London to merger the Spanish motorways group with its German unit Hochtief [ETR:HOT], El Confidencial reported.
ACS CEO Marcelino Fernández Verdes met international funds last week to raise at least EUR 6bn to counter the offer tabled by Italian Atlantia [BIT:ATL], the online Spanish-language report said citing financial sources.
The transaction proposed by the Spanish construction company consists in setting up a special purpose vehicle (SPV) dependent on Hochtief that will bid for Abertis via a capital increase in partnership with the funds, the report went on to say. Later, the German company will acquire the SPV through a merger by absorption.
Under the proposal, the funds would take a minority stake by contributing more than EUR 6bn in cash and another EUR 10bn in bank debt, the report said. The transaction will end with the merger of Hochtief and ACS, the item added.
JPMorgan and Lazard are advising ACS.
A report in the online Spanish-language paper Vozpopuli said that one of the last options under consideration is the issue of EUR 5bn in debt through Hochtief. The issue of bonds would avoid a dilution of ACS' stake in the German subsidiary, the unsourced report noted.