Abertis Infraestructuras S.A. and GIC reached an agreement to acquire Goldman Sachs Infrastructure Partners’ (GSIP) 70% stake in Red de Carreteras de Occidente (RCO), the Spanish toll road operator.
Abertis will acquire 50.1% of RCO for nearly EUR 1.5bn (USD 1.7bn), which the company will finance through available cash and existing loans.
GIC will serve as financial sponsor and own 19.9% of RCO.
Mexican pension funds (AFORES) will own the remaining 30% of RCO through one of the country’s first-ever CKD funds.
The total enterprise value of RCO is approximately EUR 5bn.
RCO manages five road concessions in Mexico totaling of 876km (544.3 miles) of highway.
Two teams were in the running to acquire GSIP’s stake in RCO. Along with the Abertis-led consortium, China Communications Construction Company also reached the second round of the bidding process.
This marks Abertis’ entrance into the Mexican highway sector and, according to the company, will facilitate its analysis of future opportunities in the country.