© Autopista del Aconcagua.

Globalvia purchase:KNB Malaysia displaced by 3 pension funds

USS, OPTrust and PGGM are respectively headquartered in the UK, Canada and The Nederlands and are pension funds.

Eva González Madrid (Spain), 23 October, 2015

Bankia and FCC (Fomento de Contratas y Construcciones) have signed the the sale of the Spaniard infrastrucutres company Globalvia to the USS, OPTrust and PGGM funds for an amount that could reach €420 million, the same amount initially agreed with Khazanah Nasional Berhad Malaysia on 1st July 2015.
Bankia and FCC own each a 50% of Globalvia.

The strategical investments fund owned by the Government of Malaysia, the Khazanah Nasional Berhad (KNBM) has been displaced by an offer almost at the same price made by the USS, OPTrust and PGGM funds because these three companies have exercised their right of first refusal on the grounds that they were holders of a bond convertible into shares of the company worth €750 million.

The operation is still subject to obtaining the required approvals of some of the  Administrations that granted the concessions which  are owned by Globalvia.

Among many big projects Globalvía has participated in, they are some examples like: Aconcagua highway (Chile); Itata highway (Chile), Highway of El Sol (Costa Rica), M50 (Ireland), and other may projects like the light trains of Madrid or the Central Highway of Galicia in Spain.

With this sale, Bankia could obtain €210 million, in a deal that is positive for the bank in terms of liquidity and capital and adds to the recently announced sale of City National Bank of Florida (CNB) to the Chilean Banco de Crédito e Inversiones.

The sale of CNB is estimated to generate a net capital gain of €117 million for the Bankia Group, after having marked to market the stake in 2010. This capital gain, together with the 91 million euros contribution to the Group’s net profit in 2014 and 2015 generates a total impact of €208 million.

Both transactions mean a further step in implementing the Strategic Plan 2012-2015 of the BFA-Bankia Group. The plan is aimed to provide for thebank exit from the capital equity of its portfolio of participated companies.

Image over the headline.- © Aconcagua highway.