Ferrovial subsidiary Cintra Infraestructuras SA has begun the process to sell 10% of the 407 ETR toll road in Toronto, Canada. Cintra currently owns 53.23% of the company, with partners Intoll (30%) and SNC-Lavalin Inc (16.77%). Cintra has mandated RBC Capital Markets to act as financial advisor on the transaction as a whole.
"We have decided to approach the market in order to sell part of our stake in 407 ETR; however, the final decision will depend on the value of the offers we receive. The process is part of our asset rotation policy and is in response to interest expressed by various investors.
The road is one of the best infrastructure assets in the world. We plan to use the proceeds from the deal in new toll road projects and to pay down debt before maturity," said Íñigo Meirás, CEO of Ferrovial. The consortium headed by Ferrovial obtained a 99-year concession for 407 ETR in 1999. The first sections of the road opened to traffic in 1997. 407 ETR is a 108 km bypass around Toronto, Canada, with 198 on- and off-ramps, running parallel to the 401, Toronto's first beltway, which is one of the most congested roads in North America. 407 ETR has proven its quality since its inauguration, having attained high levels of traffic even in the recent years of recession. Users benefit from the most advanced tolling system in the world, which does not require vehicles to stop.
407 ETR bills over 1.5 million users per month using a transponders or a sophisticated video recognition system. The road averaged 370,000 trips per day on weekdays in 2009. The carbon footprint of 407 ETR users is 50% lower than on other toll roads in the region since fuel consumption is reduced by 3 liters and drivers save 33 minutes on a 40-kilometer trip.
The collision rate is 50% less than on other Ontario highways. FERROVIAL Ferrovial is one of the world's leading infrastructure groups, with over 100,000 employees, a presence in 49 countries and operations in a range of complementary industries such as construction, airport and toll road management and maintenance, and municipal services. The company owns two of the world's leading private transport infrastructures: Heathrow airport, in London, and 407 Express Toll Route, in Toronto. Over 60% of Ferrovial's revenues come from outside Spain, mainly from other OECD countries. The company, which is listed on the Madrid Stock Exchange, is a member of the Dow Jones Sustainability Indices and the FTSE4Good index.