Banc Sabadell | The bank guarantees of around 1 Bn€ held by Ferrovial´s Services Division (which we value at approximately 2.5 Bn€; ~7X EV/EBITDA) are complicating its sale and could lower its valuation to 2 Bn€ (vs 2.5 Bn€ rumoured).
Renta 4 | Ferrovial (FER) remained in the red at the close of the first quarter. According to the company it registered losses of 98 M€ on making provisions of 345 M€ for the delays which have accumulated in the construction of two motorways in the US.
Sabadell | The funds Lone Star and Apollo have demonstrated interest in acquiring 100% of Ferrovial’s services subsidiary. Goldman Sachs distributed the indicative document (teaser) several weeks ago.
Alphavalue | The Spanish constructor revealed on Friday the traffic figures for February. Heathrow airport had 1.48 M passengers in February, an increase if +1.7% yoy.
Ferrovial, principal private sector Spanish airport management company, intends to participate in the privatisation of the French Aeroports de Paris, which the French government is trying to offer on a 70 year concession. They calculate it will make between 8 and 10 billion euros. Ferrovial recognises that the scale of the operation will require the formation of consortia.
Santander | The growth in passenger numbers registered at Zurich in November (6.0 % vs. 6.0% est), Aena (6.9% vs 6.5% est) and ADP (5.4% vs 4.8% est) was more or less in line with our estimations, while the traffic in Fraport (4.7% vs 6.5% est) and Heathrow (3.3% vs 0.2%) remained below.
Link Securities | The Spanish construction and infrastructure company Ferrovial has won the contract to install two electrical substations in support of the construction of what will be the UK´s first high speed rail line linking London and Birmingham.
Acciona has obtained one of the biggest rail contracts currently underway in Australia, namely the upgrade of a line to boost the service in Melbourne worth 518 million Australian dollars (around 350 million euros). It sees 100 billion euros of infrastructure development opportunities in Australia and New Zealand in the next 10 years.
Ferrovial has teamed up with the Australian company Plenary to bid for motorway and other infrastructure concessions in Australia and New Zealand. They will create a joint venture (the Netflow consortium) through Ferrovial’s concessionary arm Cintra. This market is a priority one for Ferrovial, basically because of its high profitability.
Carax- Alphavalue | 2016 is no great vintage for Spanish group Ferrovial (Add, France) which spent the year sailing into headwinds including the bankruptcy of one of its US toll roads in March, Brexit in June (36% of sales are generated in the UK) and the widening of South European sovereign spreads from October.