China Communications Construction Company, Ltd. (CCCC) is set to take a stake of 30% in the capital of Mota-Engil, Portugal´s largest construction company.
Mota-Engil is in the “last stages of negotiation of a partnership and investment agreement with one of the largest infrastructures groups in the world (top five), with significant activity worldwide, aiming such group to become a relevant shareholder and a long-term partner”, the company said in a statement released Thursday.
In the context of the envisaged agreement, the controlling shareholder of Mota-Engil, Mota Gestão e Participações, SGPS, S.A. has accepted to sell a relevant stake in the share capital of the company at a price “that reflects a valuation which is high above the current market price”, it adds.
The agreement is expected to be finalized “shortly”, with CCCC entering into a partnership and investment understanding with Mota-Engil to jointly develop commercial opportunities.
The chinese partner will be committed to subscribe a relevant stake in a share capital increase of up to 100 million
new shares that will be submitted for deliberation in a General Meeting, to be called shortly.
Following this share capital increase, a stake of around 40% of the share capital will be attributable to MGP, “showing a full commitment and alignment with its historical position in the company”, and CCC will reach a stake slightly above 30%, the statement adds.
“This new configuration and the framework of this partnership, which is based on Mota-Engil’s valuation of circa
EUR 750 million, will enhance the financial, technical and commercial capabilities of Mota-Engil in order to upscale its activities in all markets and will open new opportunities for further developments”, the company states.