London listing for Mota-Engil Africa
By Chris Sleight19 June 2014
Mota-Engil Africa, a subsidiary of Portuguese contractor Mota-Engil SGPS, is to seek a listing on the London Stock Exchange. Existing shareholders in Mota-Engil will have preferential access to the Initial Public Offering (IPO) of Mota Engil Africa equity.
Mota Engil SGPS said it was looking to float at least 25% of its African subsidiary, which had revenues of € 1 billion (US$ 1.35 billion) last year and earnings before interest, tax, depreciation and amortisation (EBITDA) of € 243 million (US$ 330 million). Its backlog as of the end of March was € 1.7 billion (US$ 2.3 billion).
The proceeds of the IPO will be used to expand Mota-Engil Africa’s activities in Sub-Saharan Africa, with a particular focus on the Southern Africa Development Community (SADC), which comprises Angola, Botswana, DR Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. The company added that it would diversify its operations and fund an expansion into large mining and oil & gas services projects.
Mota-Engil Africa has been active in Sub-Saharan Africa since 1946. It employs 14,600 people in the region and has 4,500 pieces of heavy equipment available for use. Its assets include 16 quarries and 19 batching plants, with a total installed capacity of 2,740 tonnes per hour.