Empresas ICA, S.A.B. de C.V., the largest infrastructure and construction company in Mexico, announced the signing of a definitive agreement to sell its 18.7% stake in Red de Carreteras de Occidente, S.A.B. de C.V. (RCO), the concessionaire for approximately 760 km of highways in Mexico to funds managed by Goldman Sachs.

ICA expects to receive Ps. 5,073 million ($380 million) for its investment and to continue operating the highways. The transaction completes an asset recycling process initiated in 2012.

The transaction is subject to customary closing conditions and approval by the Ministry of Communications and Transportation and the Federal Competition Commission.

Alonso Quintana, ICA's CEO, said, "The sale of ICA's investment in RCO is a clear example of our strategy of selective recycling of capital in our asset portfolio and creating value for ICA's shareholders. The proceeds are expected to be used to pay short-term corporate debt that was used to accelerate the completion of projects, as well as to complete funding the equity commitment.

Red de Carreteras de Occidente (RCO) is the company behind the construction, operation and maintenance of  concessioned highways in Mexico, including the Maravatío-Zapotlanejo and Guadalajara-Aguascalientes-León highways running through the states of Michoacan, Jalisco, Guanajuato, and Aguascalientes. The company operates over 558km of toll highways in the country. In 2011, ICA transferred its stake in the 74.3km Irapuato-La Piedad highway and the 93km Querétaro-Irapuato highway to RCO.

Source: ICA