Spanish builder Sacyr Vallehermoso said it has sold its Itinere highway business to Citigroup infrastructure fund for €7.887 billion ($10.20 billion), cutting its debt pile by a third.
The transaction, which includes €5 billion in debt, cuts the constructor’s total debt from Jan 1 by 37% to €12.5 billion and will ease mounting pressure on Sacyr to sell its around 20% stake in oil group Repsol.
Russia’s LUKoil has expressed interest in buying the constructor’s Repsol stake, prompting Prime Minister Jose Luis Rodriguez Zapatero to say that the government will fight to keep the oil major Spanish and independent.
Citi will acquire Itinere for €3.96 per share and has reached a separate agreement with Spanish concessions group Abertis and Italy’s Atlantia to sell the highways concessions in Spain, Portugal, Brazil and Chile. (Reuters)