Ferrovial mulls splitting up Ferrovial Servicios to ease EUR 3bn sale; document expected before year end
Grupo Ferrovial [BME:FER], the listed Spanish infrastructure and construction group, will break up its services division Ferrovial Servicios to ease its sale, Expansion reported. The business is valued at about EUR 3bn, according to the report, which cited sources from potential buyers.
Ferrovial and Goldman Sachs, the bank appointed to advise on the transaction, have told suitors that a sale document will be ready before the end of the year, Expansion went on to say. The delay is due to discussions around how the business will be split, the Spanish-language paper said.
Financial sources told Expansion that some funds have told Ferrovial they would prefer a sale in blocks, as it allows them to acquire the assets that best match their interests. This would also isolate the problems facing Ferrovial Services' operations in the UK, where the Brexit effect has sunk the valuation, according to the report.
Ferrovial Servicios reported 2017 revenues of EUR 7bn, about 57% of the group’s total sales. EBITDA was EUR 423m.