Project initially includes four Mexican tollroad and highway concessions, totaling 433 km of highways across Mexico
MONTREAL and MEXICO CITY, June 19, 2015 /CNW Telbec/ - Empresas ICA, S.A.B. de C.V. (BMV and NYSE: ICA), the largest infrastructure and construction company in Mexico, and CDPQ (Caisse de dépôt et placement du Québec), one of Canada's leading institutional fund managers, announced today the completion of the transaction to create an operational platform that owns the concessions for four of ICA's operational toll roads and highways.
The operational platform, ICA Operadora de Vías Terrestres ("ICA OVT") is a newly formed joint venture company. ICA transferred its ownership interest in the concessionaires for the four projects to ICA OVT. Under the terms of the transaction, ICA owns 51% of the platform and CDPQ 49%. For its equity interest, CDPQ is paying ICA Ps.3,014 million which will in turn be principally used to prepay ICA's short term corporate debt.
ICA and CDPQ will operate the joint venture with a focus on participating in the operation and acquisition of highway and toll-road infrastructure assets in Mexico. ICA will continue to be responsible for the operation of the highways and for all maintenance requirements. The four highways and tollroads included in the initial transaction are, Mayab tollroad, Rioverde – Ciudad Valles highway, La Piedad Bypass and the Acapulco Tunnel.
Alonso Quintana, ICA's CEO, noted, "ICA is pleased to form this partnership with CDPQ, a world-class fund manager. This transaction enables ICA to monetize a significant portion of our investment in these mature assets, and redeploy the capital to reduce corporate debt and fund our investments in the next wave of infrastructure development that is occurring in Mexico. This transaction represents the first step in the creation of a platform that, by incorporating other similar assets as they mature, will allow us to continue to grow in a balanced manner, while at the same time systematically reducing our leverage and creating value for ICA shareholders."
"This partnership with Mexico's largest construction and infrastructure firm presents an opportunity to increase our exposure to a promising market at a time when major structural reforms are underway to step up infrastructure programs and stimulate the country's economic growth," said Macky Tall, Senior Vice-President, Private Equity and Infrastructure at CDPQ.
"By partnering with ICA, a true industry leader, we are doing more than simply investing in four Mexican highway projects. We are creating a long-term operational platform to foster our participation in major projects that have a direct impact on the economy, while generating attractive returns for our clients," added Mr. Tall.
This press release contains projections or other forward-looking statements related to ICA that reflect ICA's current expectations or beliefs concerning future events. Such forward-looking statements are subject to various risks and uncertainties and may differ materially from actual results or events due to important factors such as changes in general economic, business or political or other conditions in Mexico, Latin America or elsewhere, changes in capital markets in general that may affect policies or attitudes towards lending to Mexico or Mexican companies, changes in tax and other laws affecting ICA's businesses, increased costs, unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms and other factors set forth in ICA's most recent filing on Form 20-F and in any filing or submission ICA has made with the SEC subsequent to its most recent filing on Form 20-F. All forward-looking statements are based on information available to ICA on the date hereof, and ICA assumes no obligation to update such statements.
Empresas ICA, S.A.B. de C.V. is Mexico's largest infrastructure company. ICA carries out large-scale civil and industrial construction projects and operates a portfolio of long-term assets, including airports, toll roads, water systems, and real estate. Founded in 1947, lCA is listed on the Mexican and New York Stock exchanges. For more information, visit ir.ica.mx.
ABOUT CDPQ (CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC)
La Caisse de dépôt et placement du Québec is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2014, it held C$226 billion in net assets. As one of Canada's leading institutional fund managers, CDPQ invests in major financial markets, private equity, infrastructure and real estate, globally. , Its infrastructure portfolio totals more than C$10 billion in assets. For more information: www.cdpq.com.
SOURCE Caisse de dépôt et placement du Québec
For further information: Empresas ICA: Gabriel de la Concha, CFO; Elena Garcia, Investor Relations, +5255 5272 9991 x 3608. [email protected]; in the US: Daniel Wilson, Zemi Communications, +1 212 689 9560, [email protected]; Caisse de dépôt et placement du Québec: Maxime Chagnon, Senior Director, Media Relations, +1 514 847 5493, [email protected]