EQT To Sell Parkia To First State For €300M+

24 June 2016 – Expansión

The Nordic fund EQT has brought forward the process to select offers for the purchase of its 66.8% stake in Parkia, one of the leaders in the Spanish car park market. According to sources, the likely buyer is the Australian fund First State. The consideration paid could amount to more than €300 million for 100% of the company.

EQT, advised by BBVA, may announce the completion of the operation today. Parkia’s other shareholder is Mutua Madrileña, which controls 33.2% of the car park company. The Spanish insurance company may also sell its stake to First State if it considers the price to be attractive enough. According to the terms of the bid, interested parties must submit two offers: one for the shares owned by EQT and another for 100% of the company.

After undertaking a preliminary process to select certain bids a few weeks ago, several groups passed through to the final round. As well as First State, the other finalists included Saba, Empark, Indigo (controlled by the fund Ardian) and Interparking. Provided there are no last minute changes, EQT will opt to award the shares to the Australian fund. In theory, the definitive deadline for the receipt of offers had been extended until the middle of July, but EQT decided to bring forward the transaction.

Valuation

Throughout the sales process, interested investors have indicated a valuation range for the whole company of between €300 and €350 million, which represents between 15x and 17x of forecast EBITDA for 2016 (c. €20 million).

First State is known in Spain because it acquired a stake in the Galician regasification firm Reganosa which had belonged to the savings banks. First State is the asset management arm of the Commonwealth Bank of Australia, one of the largest banks in Australia. The sale of Parkia represents a turning point in the car park sector, which has received renewed interest from investors thanks to improvements in activity.

Original story: Expansión (by C. M. / D. B. / M. P. L.)

Translation: Carmel Drake

Saba & Ardian Bid For Spain’s 3rd Largest Car Park Group

17 May 2016 – Expansión

A dozen “Spanish and international” candidates have submitted bids for the purchase of Parkia, the third largest car park group in Spain, owned by the Nordic fund EQT. Market sources say that the candidates include major companies in the sector, such as Saba, Indigo (controlled by the investment fund Ardian), Interparking and Empark, as well as financial groups specialising in infrastructures, such as Infravía.

Some sources also include Globalvía on the list of interested parties, but a spokesperson for the concessionaire said yesterday that they are not going to submit a bid for Parkia. Sabadell is also expected to submit a bit, thanks to its partnership with the funds Altamar and Firmium, through which it plans to invest more than €150 million in car parks in Spain.

The exact amount of the bids has not been revealed, but sources state that the perceived competitiveness and facilities available to investors to leverage the transaction have helped to boost the price. Sources in the know indicate a valuation range for the whole company of between €300 million and €350 million, which would represent between 15x and 17x of the forecast EBITDA for 2016, which is expected to amount to €20 million.

EQT must decide “in the next few days”, say the sources, which bidders will make the cut and proceed to the next phase of the process, which will involve a period of due diligence (audit of the assets), in which the potential buyers will analyse the company in detail so as to prepare their binding offers.

The plan is to select between “three and five” investors from the initial interested parties, who will participate in the definitive bid. The aim is to complete the process by the end of July.

Although the operation is moving ahead, the role of Mutua Madrilña – the co-owner of Parkia with 33.2% of the capital – is still uncertain. In theory, the Spanish insurance company plans to retain its stake in the car park manager, but that will depend on the conditions that EQT ends up agreeing, say sources. Mutua declined to comment on the deal. (…).

Parkia owns 58 car parks, with a total supply of 27,000 parking spaces and an average concession life of 30 years. The company’s revenues amounted to €33 million last year. (…).

Original story: Expansión (by M. Ponce de León, D. Badía and C. Morán)

Translation: Carmel Drake

Saba Wins the Parking Lots in Barcelona

2/07/2014 – Expansion

Saba outbidded Interparking at the auction assuming a partial privatization of the best car parks belonging to Barcelona City Hall.

The company chaired by Salvador Alemany presented the best financial offer stating that Saba will acquire 60% at Bamsa, a firm that is bound to manage the 26 parking lots in the downtown for the next 25 years. The remaining 40% will remain in hands of the City Council.

Saba, held by La Caixa, KKR, ProA and Torreal, has offered €232 million, juxtaposed with the €166.5 million proposal of Belgian Interparking. The price started at €160 million.

Apart from that, Saba also turned out to be better in technical aspects scoring by 91 points higher than the competitor. Another suggestion that convinced the City Hall was handing over 100% of the revenues above those foreseen in the bidding, whereas Interparking offered only 21%.

Although the socialist group of workers at the City Council raised objections to the sale, Barcelona´s mayor is very pleased with the deal. On signing the contract, the Hall will receive €100 million which will be intended for development of social housing blocks.

Over the past months, Saba has purchased car parks at 50 Adif´s railway stations and a bunch of parking lots from Aena, including spaces of the Barcelona-El Prat airport.

 

Original article: Expansión (by A. Zanón)

Translation: AURA REE