Garrigues has advised the owner of Itinere Infraestructuras on its near €8bn sale to Citi Infrastructure Partners, in one of the biggest M&A deals to hit the Spanish market this year.
The deal sees construction company Sacyr-Vallehermoso sell Itinere Infraestructuras for a total consideration of €7.89bn. The price includes €5.01bn in debt, which will be taken on by Citi Infrastructure Partners. The Citi fund will also offload a selection of Itinere highways as part of the agreement.
The sale has been prompted by the increasing costs of financing infrastructure projects. Sacyr is aiming at cutting its debt by over 35%, which will see its liabilities reduced to almost €12.5bn.
Madrid giant Garrigues is reportedly advising Sacyr on the transaction through M&A head Fernando Vives. The firm has been involved in a number of the high-profile cross-border M&A deals involving Spain this year. These include advising Fomento de Construcciones y Contratas on its €780m purchase of Babcock & Brown's wind farm portfolio in Spain and Zurich Financial Services Group on its €750m purchase of a 50% stake in a selection of Banco Sabadell's insurance and pension units
Citi turned to CMS Albinana & Suarez de Lezo as its Spanish counsel.