ACS Sells Stakes in Chilean Toll Roads

Spanish construction company Actividades de Construccion y Servicios (ACS) has agreed to sell positions in 2 Chilean toll roads to a consortium led by Toronto-based Brookfield Asset Management for EUR216m ($292m). In the deal, ACS sells its roughly 50% stake in Vespucio Norte and its stake in Tunel de San Cristobal. Rotating concession assets, operating them for a short time and selling them to infrastructure or pension funds has always been a part of ACS’ strategy, says an industry analyst, who expects ACS will remain in Chile. “They decided to carefully review all its assets. They decided these are mature enough to be sold and in a time, in a country where there is still some appetite from investors for this type of asset,” the analyst says. The analyst declined to estimate the multiple in the transaction, but notes that 1.5x book value is typical in the sector. A second infrastructure analyst suggests the deal was roughly 2x price to book, which is “more or less an average sector multiple.” A spokesperson at Brookfield pointed out that the company likes the economic outlook in Chile, and toll roads offer in essence a new operating platform for the company. “Brookfield is looking at a number of opportunities to purchase infrastructure in the Americas, in North and South America, from the European companies that are refocusing on their home markets,” he says. Earlier this month Chilean Inversiones Infrastructura Dos acquired 50% of a highway project from Sweden-based Skanska for $42.8m equivalent.