Not for distribution in the United States, Canada, Australia or Japan
The transaction, which implies Macquarie Infrastructure Group (MIG) divesting Cintra, will be completed in 2004
The agreement also envisages MIG acquiring 13.87% of the 407 Express Toll Route (ETR) in Toronto in exchange for 11.99% of Cintra
Cintra is one of the worlds largest toll road concession companies, with a committed investment of over 1.3 billion euros in 16 toll roads located in Spain, Portugal, Ireland, Chile and Canada
Ferrovial and Australias Macquarie Infrastructure Group (MIG) have reached an agreement to perform the necessary actions for toll road concession subsidiary Cintra (owned 60% and 40%, respectively) to be floated on the Spanish stock market.
The preparations for the IPO will commence immediately and both parties plan to complete it in 2004, although it depends on favourable market conditions. Ferrovial and MIG will jointly designate the global coordinators for the IPO and, once selected, the final structure of the deal will be determined.
As a result, MIG will sell its entire stake in Cintra whereas Ferrovial will keep a majority stake.
The agreement also envisages MIG acquiring 13.87% of the 407 ETR in Toronto by exchanging 11.99% of Cintra shares.
After that transaction, Cintra will own 53.23% of the 407 ETR and MIG 30.00%. The rest (16.77%) will remain in the hands of local engineering company SNC Lavalin.
Good relationship between both groups
In January 2002, Ferrovial reached an agreement with Australias Macquarie Infrastructure Group (MIG), which acquired 40% of Cintra for 816 million euros. As a result, Ferrovial strengthened its concession business and ensured Cintras growth capacity in future projects both in and outside Spain.
In that period, the relationship between Cintra and Macquarie has been positive and both companies are open to jointly study and bid for future transport infrastructure projects anywhere in the world.
At the moment, Cintra and Macquarie in consortium have been pre-qualified for a new toll road project (Chicago Skyway Toll Bridge System) in Chicago (EU).
Ferrovial and Macquarie Airports jointly manage Bristol airport, which they co-own, and they are shareholders in the Sydney airport operating company.
Cintra: toll roads in Europe, Chile and Canada
Cintra centralises Ferrovials toll road bidding and management activities in Spain and elsewhere and it is one of the worlds largest private developers of transport infrastructure, with over 1.3 billion euros committed in concession companies equity.
Ferrovial currently manages 16 toll roads, totalling 1,600 kilometres, in Spain, Portugal, Ireland, Chile and Canada. In the latter, Cintra has a 99-year concession to operate the 407 ETR in Toronto which, with an overall investment of 2.4 billion euros, is Canadas largest privatisation ever and the largest toll road investment outside Spain headed by a Spanish group.
At present, Cintra is studying toll road concession projects mainly in Europe (Portugal, Ireland, Greece, Italy and Poland) and the US (Chicago, Atlanta, Texas, etc.).
(This information is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares in Cintra (the `Shares`) may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the `Securities Act`)) unless registered under the Securities Act or pursuant to an exemption from such registration. The Shares have not been, nor will be, registered under the Securities Act. Any offer of the Share in the United States will be made by means of a prospectus that will contain detailed information about Cintra and its management, as well as financial statements).
