Spanish infrastructure group abertis has further cut its holding in Eutelsat, selling a 7% stake to China Investment Corporation (CIC) for €385.2m.
The sale means that abertis has reduced its ownership in the satellite operator from 31.35% to 8.35% in…
Spanish infrastructure group abertis has further cut its holding in Eutelsat, selling a 7% stake to China Investment Corporation (CIC) for €385.2m.
The sale means that abertis has reduced its ownership in the satellite operator from 31.35% to 8.35% in less than six months.
At the end of January 2012, abertis completed an accelerated private placement of 35,218,237 ordinary Eutelsat shares representing 16% of the company. The placement, which was managed by Credit Suisse, Morgan Stanley and Société Générale, raised proceeds of approximately €981m.
Under the terms of that transaction, abertis was subject to a six-month lock-up on its remaining holding and a company spokeswoman told SatelliteFinance that CIC has agreed to not to disposed of the acquired shares for the remainder of that lock-up period, which is due to expire on 13 July 2012. abertis’ remaining 8.35% stake is also subject to that lock-up.
As to what abertis plans to use the proceeds for, the spokeswoman said that no decision had been taken yet, although pointed to the letter of intent for the integration in abertis of the toll road concessions managed by OHL in Brazil and Chile. She said that the Eutelsat proceeds could be assigned to this.
While it has sold the majority of its Eutelsat holding over the first half of 2012, the spokeswoman said that the group has not taken any decision with regard to whether it would seek to fully exit the company in the latter half of the year.
She said: “It would depend on the situation of the markets in the following months. For the moment, abertis still believes that there is an important value creation potential in Eutelsat.”
Despite the sell down, abertis still remains an active investor in the satellite industry, holding a 46.6% stake in Spanish satellite operator Hispasat after it acquired telecoms operator Telefonica’s 13.23% holding in late February. SatelliteFinance understands that abertis is likely to seek to further increase this holding.
Indeed, in a statement on the CIC transaction, the infrastructure group said: “abertis keeps on reshuffling its holdings in the satellite infrastructure business and strengthening its commitment to growth, specifically targeting projects in which it can take an industry leadership role and a greater financial consolidation, as in the case of Hispasat.”
abertis originally acquired its 32% stake in Eutelsat in late 2006 for approximately €1.07bn. The sellers comprised a group of investment funds including Cinven, Nebozzo (a joint venture between TPG and Spectrum Equity Investors) and Goldman Sachs.
The company would not disclose the financial or legal advisers on the CIC stake sale.
