Mota-Engil sells 30% of company to mystery new partner
Portugal’s largest and most important construction company in terms of international reach and projects has sold 30% of its share capital to an “unspecified overseas player” in the same sector.
While the Mota-Engil has declined to supply details of the new partner, the online digital news source is speculating that the new shareholder is China Communications Construction Co which had been pondering buying part of the company’s capital.
The possible other candidates are: Vinci (France), Grupo ACS (Spain), Bechtel (USA), Hochtief, (Germany), Skanska (Sweden), Balfour Beatty (UK), Bouygues (France), Royal BAM Group (Netherlands), and the China State Construction Engineering Corporation Ltd (China).
Mota-Engil has projects and interests all over the world including Eastern Europe, Portugal, South America and Africa.
The company did, however, announce on Wednesday that it was “in the final stages of negotiations in striking a strategic partnership and investment agreement” that includes the sale of around 30% of the company’s share capital to “a new shareholder”.
The entry of the new shareholder in Mota-Engil will be undertaken via a subscription to a “relevant share of the company through an increase in the company’s capital share up to €100 million of new shares, the decision of which will shortly be submitted for discussion by the company’s general board meeting.
According to Mota-Engil, the new partner is “one of the largest infrastructure groups in the world and one of the Top 5, with significant activity internationally,” while the agreement aim is for “this group to become a relevant shareholder and a long-term partner” states the company in a communiqué sent to the Portuguese stock market commission CMVM.
The statement also says that the deal is worth around €750 million. Mota-Engil also announced on Wednesday that its business had gone from profits to a €5 million loss in the first half of 2020.