Spain Approves Abertis's Purchase of Eutelsat's Hispasat Stake
April 06 2018 - 10:06AM
Dow Jones News
By Alberto Delclaux
Spain's government has approved Abertis Infraestructuras SA's
(ABE.MC) purchase of a new stake in satellite company Hispasat,
bringing Abertis a step closer to transferring ownership of its
holding, and smoothing the way for a joint takeover of Abertis.
Abertis will buy a 32.6% stake in satellite communications
operator Hispasat from France's Eutelsat Communications (ETL.FR)
following an agreement between the companies in May 2017, the
Energy Ministry said in a press statement.
Abertis already owns 57% of Hispasat, and the government green
light makes it easier for the toll-road operator to sell its larger
majority Hispasat stake to Spain's national grid operator Red
Electrica Corp. SA (REE.MC).
The approval comes as a protracted takeover deal for Abertis
nears an end. Clarity on the fate of Hispasat was one of the main
obstacles to a takeover of Abertis, which was the target of a
bidding war between Atlantia SpA (ATL.MI) and Actividades de
Construccion y Servicios SA (ACS.MC). The rivals finally settled on
launching a joint bid in March.
Abertis and Eutelsat agreed to the Hispasat deal in May 2017,
which required government approval because Hispasat is considered a
strategic national asset. The transaction approved Friday varies
slightly from the original agreement, with a state-owned
organization also buying a 1.06% stake in the satellite
operator.
Last month, Abertis shareholders voted in favor of selling the
company's Hispasat stake to Red Electrica on the condition that it
submit a binding offer.
Read more about the Abertis takeover:
https://on.wsj.com/2EmQbEo.
Write to Alberto Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
April 06, 2018 09:51 ET (13:51 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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