DIF Infrastructure III acquires Spanish PPP assets from ACS
Related M&A Transactions
DIF Infrastructure III (DIF) and ACS (through its affiliate Iridium) have announced the signature of an agreement for the transfer of 80% of Iridium's shareholdings in 5 operational PPP projects in Spain. Going forward it is also the intention that DIF will invest in other assets currently held by Iridium.
ACS said the assets had a 100% enterprise value of €1.33 billion and were sold for a price of €175.2 million and a net capital gain of €44.7 million.
The agreement is subject to various third party approvals from amongst others financiers and authorities. It is expected that the transaction will be completed before the end of 2014, once the required approvals have been obtained. The agreement covers the following PPP assets:
- Linia Nou Tram Quatre Metro Stations Project. (Barcelona);
- Hospital de Majadahonda (Madrid);
- Avenida America Transportation Hub (Madrid);
- Principe Pio Transportation Hub (Madrid);
- Plaza Castilla Transportation Hub (Madrid).
Iridium will keep playing an active role in the management and operations of the assets by maintaining a 20% stake along a significant presence in the governing bodies of the assets and supporting those assets in the same way that Iridium has done thus far.
The Barcelona project was fully commissioned in 2011 while the other projects have been operational since 2008. The projects' revenues are based on availability payments with up to 27 years of the concessions remaining. All projects have been financed with long term debt.
Wim Blaasse, Managing Partner of DIF stated:
"We are very pleased to enter into a strategic partnership with one of the world's leading infrastructure developer. The first transaction of this partnership provides DIF with the opportunity to invest in a portfolio of 5 operational PPP projects in Spain which will immediately generate a solid cash flow to our investors."
DIF Infrastructure III was launched in January 2012. The fund held a first close in May 2012 and realised a final closing March 2013. The committed capital is € 800 million, which substantially exceeded the target of € 600 million.