Citigroup acquires Spain’s Itinere Infraestructuras
By Steve Skinner03 December 2008
Citi Infrastructure Partners, a Citigroup infrastructure fund, has acquired Spain’s Itinere Infraestructuras from Sacyr Vallehermoso for € 7,8 billion. The acquisition represents a € 2,8 billion payment for Itinere’s equity and € 5 billion for assuming net debt.
“With this transaction, Sacyr Valleheroso reaps the value that Itinere gained from its mature concession assets,” said a Sacyr Valleheroso spokesperson. “It strengthens our financial situation by considerably reducing our debt. Since 1 January 2008 we have reduced the Group’s debt by -37% from € 19,7 billion to € 12,5 billion,” confirmed the spokesperson.
The deal still requires approval from the competition authorities and financial bodies, but once approved Citigroup will launch a takeover bid for 100% of Itinere’s capital at € 3,96 per share.
In addition to the Ininere sale Sacyr Vallehermoso will acquire from Citigroup a number of concession assets in the preliminary and construction phases that have the capacity to create net value in the future of € 450 million.