Abertis and an affiliate of global institutional investor GIC (GIC), have reached an agreement wit Goldman Sachs Infrastructure Partners (GSIP) and its affiliates to acquire the funds’ 70% stake in Red de Carreteras de Occidente (RCO), one of the largest toll road operators in Mexico. The deal will be carried out through a consortium formed by Abertis (which will control the company) and GIC. Currently, the remaining 30% of RCO is held by local investors and pension fund managers (AFORES).

Abertis will acquire from GSIP a 50.1% stake for an amount of c. EUR 1.5 billion (US$ 1.62 billion), subject to regulatory approvals and other customary conditions for this type of transaction. Total Enterprise Value (EV) of RCO is c. EUR 1.5 billion (US$ 5.42 billion). Abertis will finance the transaction with available cash and existing committed bank facilities. The closing of the transaction is expected during the first half of 2020 through a tender offer.

After the closing, RCO will be fully consolidated in the Abertis Group's accounts. RCO has a 100% stake in five concessionaires that manage 876 km through 8 toll roads. RCO is one of the largest toll road networks in Mexico constituting the main transportation route in the central-western region and connecting the main industrial corridor of El Bajío with the two largest cities (Mexico City and Guadalajara).

RCO is one of the main pure-play toll road operators in Mexico, and controls 100% of five concessionaires - four federal and one state - that manage a total of 8 roads in the country.

• FARAC I: Manages five toll roads of 663 kilometers. The roads represent the main connection between the two largest cities in the country: Mexico City and Guadalajara, crossing the states of Jalisco, Michoacán, Guanajuato and Aguascalientes.
• COVIQSA and CONIPSA: Manages two shadow toll roads of 93 and 74 kilometers, respectively. These roads cross three states in the Bajío industrial corridor: Querétaro, Guanajuato and Michoacán.
• COTESA: Manages the 31-kilometer Tepic-San Blas toll road, which connects the State of Nayarit and the Pacific coast.
• AUTOVIM: Manages a greenfield project for the construction of a 14-kilometer road that will connect the city of Zamora with FARAC I, in Michoacán. It is scheduled to enter service in 2021.