Latin America: Brookfield mandates banks to sell Chilean highway stake

02 August 2018 - 12:00 am UTC

Brookfield Infrastructure Partners engaged JP Morgan and Scotiabank to sell a 50% stake in the SPV for its Chilean highway concessions, said two sources close to the situation. 

Those sources said that bidding for the two highway assets, held by 100% Brookfield-owned Taurus Holdings Chile S.A. SPV, is already in the second phase and that binding bids are due in a “couple of months.”

Between 2011 and 2015, Brookfield acquired 100% stakes in the Vespucio Norte Express and the Vespucio El Salto-Kennedy highway (San Cristóbal Tunnel) by buying out previous owners Grupo ACS and HOCHTIEF

In 4Q11, Brookfield paid EUR 216m (USD 291m) for Grupo ACS’ 46.4% stakes in both concessions. 

In 4Q12, Brookfield acquired the outstanding shares in Vespucio Norte from ACS affiliate Hochtief for EUR 230m and in 2Q15, Brookfield acquired the outstanding shares in the San Cristóbal tunnel for an unspecified amount.

Sources said that the 100% stakes in the two assets could today fetch over USD 800m. 

Abertis, the Abu Dhabi Investment Authority (ADIA)GICGlobalviaGrupo CostaneraROADIS and Toesca all could be interested in the equity stake as they’ve previously received RFPs for the highway concessions, said the source.

The San Cristóbal tunnel project consists of a 4km highway which links Américo Vespucio avenue (in El Salto) with the communal roads of Providencia and Las Condes in the El Cerro and Kennedy avenues respectively.

The Sistema Américo Vespucio Nor-Poniente highway is located on the Américo Vespucio bypass, along the 29km section between Av. El Salto and Ruta 78 (Santiago – San Antonio Motorway), crossing the Nor-Poniente area of Santiago. 

The San Cristóbal tunnel made a loss of CLP -362m in 2017, up from a loss of CLP -3.24bn in 2016, and Vespucio Norte made a profit of CLP 22.35bn, up from a profit of CLP 7.02bn in 2016. 

Brookfield, JP Morgan and Scotiabank declined to comment.