The deal, which does not include the airport or car park businesses, implies valuing Ferrovials toll road business at over 1.530 billion euros (i.e. 1.830 billion euros including the airports and car parks). The influx of capital (816 million euros) into Ferrovial and Cintra enhances the groups capacity to grow in future projects. The agreement strengthens the two groups world-leading position in the toll road business and lays the foundation for continued expansion. Macquarie Infrastructure Group is managed by Macquarie Bank Limited, Australia´s leading Investment Bank. Within 30 months, the two groups could propose a closer strategic alliance: an IPO of Cintra or other cooperation agreements. Ferrovial is to sell 40% of the toll road business of Cintra, Ferrovials concession operating company, to Australias Macquarie Infrastructure Group, the worlds third-largest toll road operator, for 816 million euros. With this operation, Ferrovial strengthens its concession operation business (it is the world leader in terms of capital investment) and attains two goals: it realizes the value of its toll road business, which involves 15 toll roads in Spain, Portugal, Chile and Canada that are valued at over 1.530 billion euros (the implicit valuation is 1.830 billion euros including the airports and car parks); and it enhances Ferrovials and Cintras ability to grow via future projects in Spain and other countries. The transaction will provide Ferrovial with a net gain of 230 million euros in 2002. Consolidating its leading position Ferrovial has maintained a rapid pace of investment in recent years, mainly in bidding for and attaining concessions; since 1998, it has landed concessions for nine toll roads in Spain, Portugal, Chile and Canada and for twelve airports in Mexico, Chile, the US and the UK. With this agreement, Ferrovial-Cintra and Macquarie Infrastructure Group (MIG) reinforce their position as world leaders in the toll road business and lay the foundations for increasing expansion by pooling their know-how and resources: Ferrovial-Cintra as world leader in transport infrastructure operation by volume of investment, and MIG as the worlds third-largest toll road operator. Capital increase amounting to 816 million euros Macquarie Infrastructure Group -managed by Macquarie Bank Limited and specialized in privately-funded infrastructure development- will buy into Cintra by subscribing in full a capital increase of 816 million euros at Cintra. At the same time, Cintras airport and car park divisions (not included in the deal) will be transferred to Ferrovial. Ferrovial and Macquarie Bank Limited will continue as equal partners in Bristol Airport, the largest airport in southwest England, which they acquired in January 2001. The transaction is expected to conclude in January 2002, once MIG completes a fund-raising operation in the Australian securities markets to finance the acquisition of the Cintra stake. The transaction is also conditional upon obtaining the pertinent official approvals. Expansion into new markets and preferential cooperation The Ferrovial-MIG agreement opens the door to new possibilities for expansion by both groups worldwide (Cintras toll roads are in Spain, Portugal, Chile and Canada, MIG are in Australia, the UK, Germany and Portugal) and marks the commencement of preferential cooperation between Spains leading construction company, which has extensive experience and assets in the area of privately-funded development of transport infrastructure, and the Australias leading Investment Bank, which has a major presence in the area of privately-operated infrastructure. Cintras strategic target markets are Europe, the US, other OECD countries and areas with similar characteristics, and it will now focus on bidding for and managing toll roads, whereas Ferrovial will continue to expand independently in the area of airports and car parks, in Spain and other countries. Future strategic alliance The agreement between MIG and Ferrovial-Cintra is intended to be long term; within 30 months, the two partners can analyze the possibility of more intense cooperation in developing their respective businesses, potentially leading to a strategic alliance, an initial public offering of Cintra or some other form of cooperation. Ferrovial -Cintra Ferrovial, through Cintra, is the worlds leading private-sector developer of transport infrastructure (toll roads, airports and car parks) and has committed investments totaling over 1.400 billion euros. Through Cintra, Ferrovial manages 18 toll roadseight in Spain, two in Portugal, four in Chile, three in Colombia (not included in the deal) and one in Canada (the 407 ETR in Toronto which, at a cost of 2.400 billion euros, represents the largest-ever investment in a toll road by a Spanish company). The 407 ETR also represents the first experience with all-electronic tolling anywhere in the world. Ferrovial also manages 12 airports and a number of car parks, which will now be operated independently of Cintra: nine airports in Mexico, one in Chile, one in the US (Niagara Falls) and one in the UK (Bristol airport, owned jointly with Macquarie). Ferrovial manages a total of 135,000 parking spaces in Spain, where it is the leading player in this business. Macquarie Infrastructure Group Macquarie Infrastructure Group (MIG), which has been listed on the Australian stock market since 1996 and has a market capitalization of approximately 1.8 billion euros, manages nine toll roads in Australia, the UK, Germany and Portugal. MIG is one of the worlds leading private-sector operators of infrastructure: in 2000, Public Works Financing magazine ranked it third worldwide, behind Ferrovial and Dragados. Macquarie Bank Limited is the Australias leading investment bank and has 27 branches worldwide. It is a prominent investment bank, involved mainly in transport infrastructure projects: in 2000, it ranked second in Public Works Financing magazines league table of financial advisors on concession projects. Ferrovial and Macquarie first made contact in 1999 when they both bid for the 407 ETR toll road in Canada (ultimately awarded to the consortium headed by Ferrovial). Subsequently, the two groups made a joint bid for Bristol Airport, which they acquired in January 2001.