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VINCI Concessions’ international highways subsidiary has announced it has reached an agreement with a Brazilian group to purchase a toll road in Peru.

VINCI Highways has signed the agreement with INVEPAR for the acquisition of 100% of LAMSAC company, the concessionaire-holder of Línea Amarilla toll road in the center of Lima, and PEX, LAMSAC’s electronic toll collection operator.

The deal is based on an enterprise value of LAMSAC and PEX at PEN5.5 billion (US$1.62 billion) as of 31 December 2015.

LAMSAC holds a concession contract with the Municipality of Lima to build, operate and maintain the 25km-toll road, valid until November 2049. The transaction will be finalized and the operations are transferred in the second half of 2016, once the required approvals have been obtained.

In 2015, traffic on LAMSAC averaged 134,000 vehicles/day. Traffic will further increase following the completion of a new section under construction. With an average annual growth rate of more than 6% over the past 10 years, Peru features a very attractive economy.

This transaction is part of VINCI Concessions’ strategy of expansion in an area with strong growth potential. On 21 April 2015, VINCI Airports notably won the concession contract for the international airport in Santiago de Chile as part of a joint venture, which began operating the airport in October 2015. The construction of a new terminal, which will get under way soon, is expected to double the airport's capacity.

More broadly, this transaction reflects the VINCI Group's expansion goals in Latin America. With the acquisition of the Brazilian Orteng Engenharia e Sistemas company in March 2015, VINCI Energies began operating in Brazil, where it has become a leader in services linked to energy and industry. More recently, the group formed a strategic partnership with Constructora Conconcreto, a leading Colombian construction and real estate development company, to help support Colombia’s major road infrastructure development projects.