Eiffage expands its concession portfolio
The construction company Eiffage plans to buy shares in the Getlink business. According to the deal, the French developer will become the owner of 13.7% of the shares, the purchase amount will be 1.19 billion dollars.
Getlink is a French company, which is engaged in the management of infrastructure in the tunnel, located under the English Channel. Trains that pass through the tunnel are required to pay a certain rate for the use of the track, in exchange for this company being engaged in providing the necessary equipment and maintaining its condition.
After the completion of the transaction, Eiffage will own 75.4 million shares of Getlink. The seller in this case was the TCI fund. According to the agreement, the buyer will cover the designated amount at the expense of available cash, without coverage by its securities. It should be noted that for Eiffage this is not the first acquisition of shares of Getlink. A similar deal was made in 2018, at which time the construction business bought a 5.1% stake in the operator. Including the new acquisition, Eiffage now has 18.8% of Getlink securities, making it the largest shareholder of the company.
According to an earlier agreement, Getlink has the status of the concessionary operator of the tunnel under the English Channel until 2086. It should be noted that this path is important for Europe – it is one of the largest logistics centers, through which a large flow of goods turnover, as well as the transmission of electricity, takes place. By acquiring shares in Getlink, Eiffage is implementing a comprehensive strategy aimed at diversifying its portfolio by including concessions.
Eiffage is a large French company, and its main areas of activity are considered industrial construction. It implements large-scale projects to build infrastructure for the railway transport sector. The business structure includes enterprises of various specializations that carry out work on laying transport tracks, power lines, and installation of ventilation systems. Eiffage was also involved in the construction of the Channel Tunnel. One of the largest projects to date is the modernization of the Paris-Lyon rail line for high-speed trains.
Eiffage emerged in 1992 as the result of the merger of a number of large old companies, among them SAE, Quillery, and others. To the credit of these companies are such projects as the Dakar port, the Louvre pyramid, and the Tancarville bridge. Today’s business is the third largest in France in terms of production in the construction sector and the fourth largest in the European Union. The staff consists of more than 72 thousand people, 18 thousand of whom implement projects outside France. In total, the company operates in more than 70 countries. Eiffage has sales of more than 18 billion euros. The business provides a variety of solutions for many industries and undertakes the production, installation, and operation of equipment and multifunctional infrastructure systems.