deal reportere
Atlantia/Abertis: Atlantia synergies driven by Latam integration, management track record
30 NOV 2017
Atlantia plans creation of South American platform
Offer structure unlikely to change
The synergies generated by Atlantia [BIT:ATL]’s bid over Abertis [BME:ABE] are understood to being pitched as largely driven by the integration of the two companies in South America as well as by Atlantia’s management’s track record in integrating other industry players.
Atlantia and Abertis are both present in Chile and Brazil, thus allowing the creation of a larger platform in South America, it is understood.
Best practices developed by Atlantia’s management in connection, for instance, with Atlantia’s 2013 merger with Gemina, the airport holding company which owned Aeroporti di Roma, are also understood to be promoted as strong elements of the synergies package put forward by the Italian company.
Atlantia has not disclosed figures for the synergies the proposed combination with Abertis is expected to generate.
Meanwhile, the synergies produced by German construction company Hochtief’s [FRA:HOT] counteroffer are likely to derive from the use of Abertis cash to provide equity for Hochtief’s greenfield pipeline, as previously reported by this news service.
Hochtief expects the tie-up with Abertis to generate total synergies of between EUR 6bn and EUR 8bn by 2020, as reported.
Overall, Atlantia’s bid is being presented as centred on a strong industrial project that does not affect Abertis’ debt levels, it is understood. Furthermore, Atlantia is thought to benefit from a significant degree of flexibility from a financing point of view.
Atlantia is offering a EUR 16.50 per share cash offer for 100% of Abertis share capital. As an alternative to the cash bid, it is offering 0.696 shares of the Italian company for each Abertis shares, subject to certain conditions.
Meanwhile, Hochtief, which is controlled by Spanish group ACS [BME:ACS], is tabling EUR 18.76 per share in cash, with an alternative of 0.1281 new Hochtief shares for each Abertis share.
The structure of Atlantia's offer is not likely to change, although some considerations could be made about its cash component, it is understood. Atlantia has raised a further EUR 3.1bn to improve its offer, according to media reports.
Atlantia will need EUR 14.7bn for its bid, according to reports. The company's financing banks include the Spanish BBVA [BME:BBVA], Santander [BME:SAN] and CaixaBank, along with Mediobanca [BIT:MB], Credit Suisse [VTX:CSGN], Unicredit [BIT:UCG], Intesa San Paolo [BIT:ISP], BNP Paribas [EPA:BNP], Bank of America Merrill Lynch, Goldman Sachs [NYSE: GS] and ING [AMS:INGA], according to reports.
Atlantia’s is likely to wait until Hochtief’s offer is approved by Spanish regulator CNMV before raising its bid, as previously reported. The greenlight could come as early as in December, according to media reports.
Atlantia declined to comment.