Infrastructure Company Ferrovial boosts shares in Canada’s 407 ETR Highway
Ferrobial, an infrastructure company, has completed the acquisition of a 3.3% stake in 407 International (407 ETR) from an affiliate of the Atkinsreas Group, consolidating its position on Canadian toll roads.
The company is also exercising a call option to acquire an additional 1.76% of the 407 ETR common stock after receiving all necessary approvals.
Call Options are scheduled for June 11th, 2025.
The transaction, which includes the acquisition of a company managed by Atkinsrealis, which holds the related 407 ETR common stock, represents a total investment by Ferrobial of $1.999 billion ($1.450 million) with a 5.06% stake.
The investment will be categorized as $1.35 billion for the first 3.30% shares and $637 million for the subsequent 1.76%, the latter being adjusted according to a pre-advanced formula.
These acquisitions have increased ownership of Ferrobial on Canadian highways from 43.23% to 48.29%.
In a separate agreement, Atkinsréalis has finalized the Canadian Pension Planning Investment Committee (CPP Investment) to sell the remaining 1.7% shares of the 407 ETR. Meanwhile, the Public Sector Pension Investments Committee (PSP Investments) earned 7.51% interest on CPP investments of 407 ETR.
Following these transactions, the ownership structure of the 407 ETR is currently at 48.29%, CPP and other institutional investors are 44.20% and PSP investments are 7.51%.
The Highway 407 ETR is a 108km paid route in Ontario’s Greater Toronto area, and is a major contributor to reducing traffic congestion.
Since 1999, Ferrovial has been a shareholder of 407 ETR and has focused on improving mobility in the Toronto region.
In recent financial updates, Ferrovial It has been reported Compared to the same period last year, there was a 19.1% increase in interest, taxes, depreciation and adjusted earnings before amortization for the first quarter of 2025.
“Stock of Infrastructure Company Ferrovial Boosts of Canada’s 407 ETR Highway” was originally created and published. World Construction Networka brand owned by GlobalData.
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