Spain's ACS has sold the Spanish assets of its Dragados ports unit for over 720 million euros ($950.2 million), the builder said on Friday, however most of the revenue from the sale may be erased by the unit's debt.
Dragados SPL's debt is estimated by analysts at up to 600 million euros, but this was taken off ACS's 10.45 billion euros debt pile to June as the ports were classified as awaiting sale.
"Dragados SPL should have around 600 million euros of debt," BPI said in a note to clients and valued the impact of the deal as "neutral".
ACS shares were little affected by the deal at midday, rising 0.78 percent to 34.89 euros by 1139 GMT, slightly outperforming the blue chip IBEX index .IBEX which was up 0.2 percent.
The construction conglomerate, which is seeking to divest non-core assets to focus on building up its energy business, sold the ports to a group of institutional investors advised by the asset management arm of U.S. investment bank JP Morgan (JPM.N).
ACS has been looking at ways to cut its debt pile and raise its core stake in Spanish utility Iberdrola , including the partial divestment of its stake in Spanish motorway operator Abertis .
The sale comes after months of talks with JP Morgan amid difficult financing conditions for European infrastructure deals and at a price in line with what sources flagged to Reuters in June.
Dragados' buyers should be able to take advantage of a tentative recovery in business for the global shipping industry, which is clawing back from a steep plunge in 2008-2009.
APM Terminals, the port operating arm of Danish shipping and oil conglomerate A.P. Moller-Maersk , expects to see a 5 to 10 percent annual growth in global container port volumes in 2010 following a 10 percent decline in 2009.
Dragados SPL's debt is estimated by analysts at up to 600 million euros, but this was taken off ACS's 10.45 billion euros debt pile to June as the ports were classified as awaiting sale.
"Dragados SPL should have around 600 million euros of debt," BPI said in a note to clients and valued the impact of the deal as "neutral".
ACS shares were little affected by the deal at midday, rising 0.78 percent to 34.89 euros by 1139 GMT, slightly outperforming the blue chip IBEX index .IBEX which was up 0.2 percent.
The construction conglomerate, which is seeking to divest non-core assets to focus on building up its energy business, sold the ports to a group of institutional investors advised by the asset management arm of U.S. investment bank JP Morgan (JPM.N).
ACS has been looking at ways to cut its debt pile and raise its core stake in Spanish utility Iberdrola , including the partial divestment of its stake in Spanish motorway operator Abertis .
The sale comes after months of talks with JP Morgan amid difficult financing conditions for European infrastructure deals and at a price in line with what sources flagged to Reuters in June.
Dragados' buyers should be able to take advantage of a tentative recovery in business for the global shipping industry, which is clawing back from a steep plunge in 2008-2009.
APM Terminals, the port operating arm of Danish shipping and oil conglomerate A.P. Moller-Maersk , expects to see a 5 to 10 percent annual growth in global container port volumes in 2010 following a 10 percent decline in 2009.