Ferrovial completes sale of 60% of Cintra Chile to ISA for 229 million euro

Press releases

  • The company, which has 907 kilometers of toll road running from north to south, obtained 112.2 million euro in revenues in the first six months of 2010.
  • The earthquake early in 2010 led to months of work to assess the damage and begin repairs.
Cintra Infraestructuras, S.A., Ferrovial's toll road subsidiary, has completed the sale of 60% of Cintra Chile to Colombian company ISA, a leader in developing and operating infrastructure in the area of electricity, telecommunications and transportation in Central and South America. The sale completed today culminates the process that commenced with the signature of an outline agreement by the two companies on 28 December 2009.The price of the deal is approximately 229 million euro, since the price is 6.8 million Unidades de Fomento, the inflation-indexed unit of account used in Chile. The parties have also granted each other respective call and put options on the other 40%. The total price of the transaction, including the future call/put option, is 381.5 million euro, and it will generate approximately 270 million euro in consolidated net income after taxes.Cintra Chile's gross consolidated debt amounted to 1.474 billion euro at the end of June 2010. In 2009, the Chilean toll roads obtained 197.4 million euro in revenues and 135.6 million euro in EBITDA. The Chilean toll roads experienced a strong rebound in revenues and traffic in the second quarter of 2010 following the earthquake on 27 February. This divestment has been completed months after the tragic earthquake which struck Chile on 27 February 2010, after which damage to the infrastructure was assessed and repaired.Enrique Díaz-Rato, CEO of Cintra: "This divestment is part of our strategy to raise additional funds to finance new projects with high value creation potential, such as the ongoing project in Texas. In the last few months, we have successfully completed funding for two of what will be the world's most advanced toll roads: NTE and LBJ."In 2010, Ferrovial has sold its 50% stake in Autopista Trados 45 in Spain and its holdings in UK companies Tube Lines and APP.Other notable transactions by Cintra so far in 2010 include completing 2.8 billion dollars (2.6 billion euro) in funding for the LBJ highway in Texas, inaugurating the M3 toll road in Ireland, and commencing the process to sell 10% of the company holding the concession for 407 Express Toll Route (407 ETR) in Toronto, Canada. In 2009, Cintra successfully raised 2 billion dollars (1.36 billion euro) to finance the North Tarrant Express Managed Lanes project in Texas.

Cintra manages over 907 kilometers of toll road in Chile

Cintra Chile has five sections of Ruta 5 extending over a total of 907 kilometers between Santiago de Chile and the city of Río Bueno. This highway is part of Chile's vital north-south backbone. Chile's toll roads are among the strongest concessions in the world.
Autopista del MaipoTalca-ChillánRuta del BosqueRuta de la AraucaníaRuta de los RíosTotal
Length (km)237193161144172907
Location (section)Santiago-TalcaTalca-ChillánChillán-CollipulliCollipulli-TemucoTemuco-Río BuenoSantiago-Río Bueno
*Traffic in 200977,74445,99826,55131,05720,021201,372
Ferrovial entered the Chilean market in 1996 when it was awarded the Talca-Chillán toll road, which is part of Ruta 5. In 1998, it obtained the Temuco-Río Bueno section. And it was awarded the Collipulli-Temuco and Santiago-Talca sections in 1999. Finally, in 2006, it acquired Ruta del Bosque, which holds the Chillán-Collipulli concession (also in Ruta 5). Ruta 5 is part of the Pan-American Highway, which crosses Chile stretching from the border with Peru in the north to Puerto Montt in the south. Over 65 million vehicles used the road in 2009.

About ISA

ISA is a Colombian company with operations in Brazil, Peru, Bolivia, Chile, Panama and Central America; through subsidiaries and investees, it is involved in the design, construction and operation of linear infrastructures, based on a vision of promoting the continent's development. ISA is involved in electricity transmission, infrastructure construction and telecommunications, it operates and manages energy markets, and it develops roads under the concession formula.ISA's consolidated assets amounted to 8.34 billion dollars at the end of December 2009, and its revenues amounted to approximately 1.617 billion dollars. It has ten subsidiaries in the electricity industry, making it Latin America's largest international electricity transmission operator, with over 38,000 kilometers of high-tension lines. Through subsidiary INTERNEXA, it has 13,000 kilometers of telecommunications grid, the largest such network in South America, connecting Venezuela, Colombia, Ecuador, Peru and Chile.FERROVIAL Founded in 1952, Ferrovial is one of the world's leading infrastructure groups, operating through its airports, toll roads, construction and services divisions. It has a presence in over 45 countries and has some of the world's top privately-owned infrastructure assets, such as 407 Express Toll Route in Toronto, London's Heathrow Airport, Chicago Skyway and Ausol toll road in Spain. It is part of Spain's blue-chip IBEX-35 index and also of the prestigious sustainability indices DJSI and FTSE4Good.

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