MADRID – Abertis Infraestructuras SA has committed to 4 billion euros ($4.93 billion) of investments between 2018-2020, Chief Executive Jose Aljaro Navarro said on Tuesday, speaking before a meeting where shareholders will vote on a stake sale that could facilitate the company’s potential takeover, according to a report from Dow Jones.
The investment excludes any operations that would lead to non-organic growth, and most of it is earmarked for Brazil, followed by Chile and France, Navarro said at a press conference.
A smaller portion of the investment will be spent on extending the life of existing concessions in Italy and India, he said.
Abertis’s board will seek shareholder authorization for a divestiture of its stake in satellite operator Hispasat SA at Tuesday’s meeting, the Dow Jones report added.
The stake has been a stumbling block in the bidding war between Actividades de Construccion y Servicios SA and Atlantia SpA over Abertis, as Spain’s government considers the company to be strategic national infrastructure, which means it is subject to separate regulatory review.
On Monday, Spain’s market regulator CNMV said it approved Hochtief AG’s bid for Abertis.
Hochtief parent company ACS and Atlantia have previously said they may table a joint takeover offer, and it is unclear if they will let the Hochtief bid stand.