Ferrovial
Ferrovial sells Ionian Roads and Central Greece toll roads to GEK Terna. Credit: Kenny Louie.

Spanish construction company Ferrovial has divested its Greek toll roads to GEK Terna in a transaction worth €85m.

The deal includes the sale of Central Greece and Ionian Roads and will provide Ferrovial with €80m in capital gains.

Ferrovial said that the agreement aligns with its asset rotation strategy.

Concessions for both Central Greece and Ionian Roads are valid for a period of 30 years.

The Central Greece concession will be valid from 2008 to 2038, while the Ionian Roads concession is valid from 2007 to 2037.

The two assets were carried by Ferrovial through an equity method.

GEK Terna now owns 100% of both toll roads, having acquired Ferrovial’s 33.34% and 21.41% stakes in Central Greece and Ionian Roads respectively.

“The Central Greece concession will be valid from 2008 to 2038, while the Ionian Roads concession is valid from 2007 to 2037.”

Ferrovial subsidiary Cintra was selected by the Greek government as provisional contractor to build, finance and operate the Ionian Roads toll concession.

Cintra currently manages more than 1,468km of toll roads in 24 concessions in Canada, the US, Europe, Australia and Colombia.

During the first week of December, Ferrovial selected advisers including Goldman Sachs to come up with plans for the divestment of its UK subsidiary Amey as part of its strategy for a disposal of the services division.

Ferrovial put up the UK roads and infrastructure business for sale in October.

The firm posted millions worth of losses in the first half of 2018.

Its subsidiary Amey has been involved in a legal battle with Birmingham City Council in the last year over costs. It was contracted to undertake road upgrades and maintenance for the council.

Ferrovial is a multinational company that designs, constructs, finances, operates and manages roads and highways, while GEK Terna is an infrastructure operator in Greece.