Iridium has sold the remaining 51% stake in Ruta del Canal to Penta Las Américas

October 2017 — Iridium Concesiones de Infraestructura S.A., a subsidiary of ACS Group, has sold its 51% stake in Sociedad Concesionaria Ruta del Canal S.A. to Penta Las Américas, which was its partner with the remaining 49% of the property, for US$142 million.

Ruta del Canal is a Chilean toll road, located in the X Region, which connects the cities of Puerto Montt and Pargua, access point to Chiloe Island. It has 57.7 km of dual carriageway, 4.2 km of simple roadway, 9 links, 29 bridges, 12 footbridges, 2 weighing stations and 4 toll plazas.

Founded in 1992 and based in Santiago, Chile, Penta Las Americas is a privately owned investment management company. The firm launches and manages equity mutual funds for its clients. It generally invests in public equity and real estate markets across the globe. Penta Las Americas creates value through its investments in several companies, focusing on the real estate and infrastructure concession industries, among others.

Iridium Concesiones de Infraestructura is the world leader in the production and development of infrastructures, managing a diversified portfolio of projects in the main geographic markets of the world. The company is owned by ACS Actividades de Construcción y Servicios. ACS Group is a worldwide reference in the construction and services activities.

Our role in the transaction

Oaklins' team in Chile advised Iridium during the entire sale process, contacting with a large number of potential investors. It as a complex operation, given the intense activity of corporate transactions in the Chilean infrastructure market. The sale process was carried out simultaneously with the refinancing of the debt of Ruta del Canal, which meant that the financial advisor had to play a very active role in negotiating with the banks in order to adapt the conditions to the needs of the potential investors.