Brookfield Infrastructure to Purchase Majority of Brazilian Toll Road Company
Brookfield Infrastructure Partners (BIP) announced today its entrance into a joint partnership with Abertis Infraestructuras to acquire a 60 per cent interest in Obrascon Huarte Lain Brasil (OHL Brasil) for an estimated $1.7 billion. As a part of the venture, BIP would own 49 per cent of the majority interest while Abertis would cover the remaining 51.
A direct result of this offer, if accepted, will be BIP’s investment in OHL Brasil expected to total $250 million. In respect to the remaining 40 per cent of publicly traded shares, BIP and Albertis have expressed the opportunity of an offer that will acquire a total of 60-100 per cent OHL Brasil in the future.
OHL Brasil is an industry leader in toll road concessions in Brazil. Owning 3,200 km of roads, OHL Brasil accounts for 65 per cent of Brazil’s GDP which is home to two-thirds of the country’s 70 million vehicles. Brookfield Infrastructure sees benefit of investment in OHL as predicted increases in traffic will offer more monetary opportunities in the future.
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The acquisition agreement through joint venture of BIP and Abertis is expected to close in Q4 of 2012.
BIP is known for its investments in high quality investments which generate stable cash flows that appreciate in value over time. Operating in North America, South America, Australasia and Europe, BIP excels in the business of utilities, transport, energy and timber assets. BIP’s interest in OHL Brazil is part of its focus on growth by acquisition through infrastructure sectors that display similar attributes to BIP’s already successful operations.