Brisa teasers issued in potential 11.5x EBITDA deal

30 October 2019 - 12:00 am UTC

Arcus and José de Mello Investimentos (JdM) have issued teasers for their stakes in Brisa Auto-Estradas de Portugal in a process sources close say could value the whole business at up to EUR 7bn.

The two investors are each looking to sell a 40% stake in the Portuguese toll road operator and plan to receive initial offers this year.

Arcus, advised by Morgan Stanley and Millennium Investment Banking, and JdM, advised by Rothschild, have structured the sale on a “joint approach” basis, one of the sources close said. Under this arrangement, the two shareholders plan to sell at the same time, while investors can bid for either 40% or both stakes. 

JdM, the investment arm of the family-controlled Jose de Mello Group, has waived its previous pre-emption rights over Arcus’ stake. JdM owns a 57% stake in Brisa and is looking to keep a stake in the business.

The sources close said the sale of the majority stake could value the whole business, which owns five concession companies controlling 1,525km of toll roads, at EUR 6bn-EUR 7bn including debt, the source added.

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