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Exceptional Atlantia considers Hochtief stake non-strategic and may market it -resources

The symbol of an infrastructure group Atlantia is noticed outside their headquarters, in Rome, Italy Oct 5, 2020. REUTERS/Guglielmo Mangiapane/File Photograph

MILAN, July 7 (Reuters) – Italy’s Atlantia (ATL.MI) considers its 16% stake in German builder Hochtief (HOTG.DE) non-strategic and could promote it in the long term as it gears up to rejig its investment portfolio following agreeing to offer its Italian motorway unit, three sources claimed.

“The Hochtief stake is not strategic .. and the group is thinking of acquiring out of the building enterprise in the upcoming,” 1 of the resources mentioned.

No remaining determination has been taken on the prospective sale of Hochtief’s stake and there is no urgency, yet another supply said.

“At the minute there are no plans to offer Atlantia’s stake in Hochtief and any long term selection would consider into account prospective developments in partnerships and joint ventures with Hochtief, Abertis and Atlantia on new motorway projects,” a source at Atlantia mentioned.

Hochtief declined to comment on the concern.

Hochtief shares ended the day down 2.9% just after before slipping extra than 4%.

Atlantia, which acquired 23.9% of Hochtief in 2018 as component of a offer to consider in excess of Spanish toll road operator Abertis alongside one another with Spain’s ACS (ACS.MC), currently owns a 15.9% stake, which at present industry values is really worth about 750 million euros ($887 million).

The Italian group is the second largest investor in the German team behind Spanish associate ACS, which owns 50.4%.

The financial investment was in the beginning aimed at developing green-field construction projects, but Abertis then opted to go down a unique route, with acquisitions of motorway belongings together with a offer in 2020 to get U.S. tunnel operator Elizabeth River Crossing.

Atlantia, managed by the Benetton loved ones, is presently looking at selections following agreeing to promote its Italian motorway enterprise to a consortium led by point out lender CDP previously this 12 months pursuing a deadly bridge collapse 3 years ago.

The group, which will raise some 8 billion euros in cash from the CDP offer, is functioning with McKinsey to determine a established of strategic possibilities by the close of the year, just one of the resources explained.

The sources explained the group was wanting to extend its digital payments unit Telepass, most likely through acquisitions in Europe, and could also take into account acquiring a community of compact airports connected to the leisure business.

Past year Atlantia agreed to market a 49% stake in Telepass for a lot more than 1 billion euros to rework the device into a pan-European multi-company system for individuals and enterprises.

The group is also seeking into new investments in motorway property and could venture into sustainability-connected firms this sort of as renewable energy and sustainable mobility assignments, the sources mentioned.

($1 = .8460 euros)

Reporting by Francesca Landini and Stephen Jewkes additional reporting by Matthias Inverardi in Duesseldorf modifying by Jason Neely

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