Ferrovial (FER) has agreed to acquire up to a 5.06% stake in Canadian highway 407 ETR from AtkinsRealis for about 2.09 billion Canadian dollars ($1.45 billion).
The company said the deal is structured in two tranches, with 3.30% to be acquired at closing and the remaining 1.76% deferred for up to 18 months after the close through a put-and-call-option agreement, with the strike price adjusted on an mutually agreed formula.
Ferrovial said that under separate deals AtkinsRealis will sell its remaining 1.7% stake in 108-kilometer Toronto area tollway to Canada Pension Plan Investment Board while Public Sector Pension Investment Board has agreed to acquire a 7.51% interest in 407 ETR from CPP.
The transactions are expected to close in Q2, subject to closing of CPP's sale to PSP Investments, Ferrovial said.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.