Atlas Arteria (ALX) has announced that it has entered into an agreement to acquire the remaining 30% equity interest and shareholder loan in the Warnow Tunnel, a 2km toll road, including a 0.8km tunnel under the Warnow River in the city of Rostock, in the north of Germany, managed under a concession contract expiring in 2053.
ALX is purchasing the stake for EUR3.7 million (US$4.37 million), increasing its total interest in the concession to 100%. The company has owned 70% of Warnow Tunnel since its inception. The acquisition will be fully funded by ALX’s existing corporate cash and is expected to close by the end of year, subject to customary closing conditions and approvals.
The acquisition of the remaining minority stake represents a continuation of ALX’s ongoing policy of portfolio simplification and is consistent with the overall business strategy. Ownership of 100% also creates optionality for ALX to optimise the value of the asset in the future.