Italian toll road operator Atlantia has formed a joint venture (JV) with Brazil's Bertin Group to manage 1,538km of motorway under a concession deal.
The joint venture will be owned by Autostrade do Brasil and Bertin Group subsidiary, CIBE.
Atlantia CEO, Giovanni Castellucci said the deal marks another important step in expanding Atlantia's presence in Brazil. "The country offers enormous potential thanks to major infrastructure development projects over the short and medium term and its long-term growth prospects. Brazil has a key role to play in Atlantia's growth strategy in Latin America," he said.
"Together with our partner, the Bertin group, we will manage a portfolio of toll motorways mainly concentrated in the area of Sao Paolo and be ready to look at any future growth opportunities."
Under the contract, Atlantia Group will contribute 100% of concessionaire Triangulo do Sol to a new company, as well as buy new shares worth €103m to be issued by the firm.
The Atlantia Group currently owns 80% of Triangulo do Sol, which operates 442km of motorway in Sao Paolo in Brazil until in 2021.
In addition, CIBE will contribute 100% of concessionare Colinas, which has a contract to operate a total of 307km of motorway in Sao Paolo, expiring in 2028. CIBE will also contribute 100% of Nascentes das Gerais, the holder of the concession, for a total of 372km of motorway in Minas Gerais until 2032.
Atlantia said the JV is estimated to generate revenue of €354m in 2012, with EBITDA at €275m and net debt of €710m by the end of the year.
The newly formed joint venture also has an option to acquire Bertin's 95% stake in SPMAR, which holds the concession in Brazil's Rodoanel, the 105km orbital toll motorway in Sao Paolo, of which 60 km is in operation, with the remainder under construction.
Atlantia and Bertin will create a second holding company in which they will both have a 50% share, which will own a 50% interest in Tietê2, the operator of 417km of motorway in Sao Paolo until 2039.
Atlantia Group has noted that it will commit about €28m in capital contribution towards the second holding company.