Abertis strikes three-way deal for Brazil buy

By Tracy Rucinski

MADRID | Wed Apr 25, 2012 9:11am EDT

MADRID (Reuters) - Spain's Abertis (ABE.MC) struck a three-way deal to expand its toll road business in fast-growing Brazil and reduce exposure to a slow domestic market, while providing an exit for debt-laden shareholder ACS (ACS.MC).

Under a deal of about 1.6 billion euros ($2.0 billion), Abertis will integrate toll road units belonging to builder OHL (OHL.MC) in exchange for 10 percent of its own shares, about half of which are owned by building peer ACS.

Spanish infrastructure companies have been under pressure to cut debt piles amassed during a decade-long construction and property boom that went bust four years ago and to reduce their exposure to recession-hit Spain.

"This is a complex three-way deal in which the reorganization of concessions and financial assets depends on the distinct strategic objectives of each of the parties involved," Madrid-based brokerage Interdin said.

By 9:01 a.m. EDT (1301 GMT), ACS shares were up 7 percent at 14.49 euros, Abertis gained 4.6 percent to 11.66 euros while OHL was down 4.6 percent at cent to 20.02 euros.

SOMETHING FOR EVERYONE

ACS, which cannot sell its 10 percent of Abertis on the open market because of a lock-up agreement with another Abertis shareholder, will be able to offload the shares for cash to pay down debt. Last week it sold 3.7 percent of Iberdrola (IBE.MC).

OHL will also be able to reduce debt, with Abertis taking on 530 million euros of liabilities held by OHL in Brazil and paying 200 million euros cash for Chilean assets as part of the deal.

It will also receive a 10 percent stake in Abertis valued at 864 million euros at Tuesday's share price. Abertis owns 4.6 percent of its own stock and will likely buy the further 5.4 percent from ACS.

Abertis, which will become a global leader in the toll road concession sector with over 7,500 km of roads, has said it will not issue new shares for the deal.

It is already flush with cash after selling a stake in Paris-listed European satellite operator Eutelsat (ETL.PA) in January for 981 million euros.

Late Tuesday, Abertis posted a 90 percent rise in first-quarter net profit to 517 million euros thanks to capital gains from the Eutelsat stake sale and on revenues of 888 million euros.

(Editing by David Cowell)