Cintra sells majority of Chilean subsidiary

By Steve Skinner30 December 2009

Cintra, Ferrovial's toll road subsidiary, has agreed the sale of 60% of Cintra Chile to the Colombian ISA Group for € 209 million (US$ 300 million).

Both parties have agreed call and put options on the remaining 40%, which if exercised by either party would see ISA take 100% ownership. The deal, which involves 907 km of toll roads in Chile, remains conditional pending authorisation in Spain, Colombia, Chile and other jurisdictions where the companies operate.

According to Ferrovial, Cintra Chile had revenues of € 147 million (US$ 212 million) in the first nine months of 2009 and achieved earnings before interest, taxes, depreciation and amortisation (EBITDA) of € 102 million (US$ 147 million)

Cintra CEO Enrique Diaz-Rato said, "The agreement fits into our strategy of raising additional funds by selling more mature assets in our portfolio in order to use the proceeds for new projects with strong potential to create value."

A statement from Cintra said the transaction falls under Ferrovial's policy of asset rotation. During 2009 the company also sold Cintra's car park division for € 451 million (US$ 650 million) and London's Gatwick airport in the UK for € 1.6 billion (US$ 2.3 billion).

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