Cintra currently owns 53.23 percent of the company, with partners Intoll (30 percent) and SNC-Lavalin (16.77 percent). Cintra has mandated RBC Capital Markets to act as financial advisor on the transaction as a whole.
The consortium headed by Ferrovial obtained a 99-year concession for 407 ETR in 1999. The first sections of the road opened to traffic in 1997. 407 ETR is a 108 km bypass around Toronto, Canada, with 198 on- and off-ramps, running parallel to the 401, Toronto's first beltway, which is one of the most congested roads in North America.
407 ETR bills over 1.5 million users per month using a transponders or a sophisticated video recognition system. The road averaged 370,000 trips per day on weekdays in 2009. The carbon footprint of 407 ETR users is 50 percent lower than on other toll roads in the region since fuel consumption is reduced by 3 liters and drivers save 33 minutes on a 40-kilometer trip.
Inigo Meiras, CEO of Ferrovial, said: “We have decided to approach the market in order to sell part of our stake in 407 ETR; however, the final decision will depend on the value of the offers we receive.
"The process is part of our asset rotation policy and is in response to interest expressed by various investors. The road is one of the best infrastructure assets in the world. We plan to use the proceeds from the deal in new toll road projects and to pay down debt before maturity.”
Is this a sensible move from Ferrovial?
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