Spanish constructor Sacyr Vallehermoso has sold off its Itiniere motorway business to Citigroup for 7.9 billion euros. This is to reduce its massive debts as the domestic housing slump bites hard. The purchase is made up of 2.87 billion euros in cash and 5 billion euros of assumed debt. Spain’s fifth-largest construction company ended September 2008 with debts amounting to 16.5 billion euros, around seven times its market value. This after the company borrowed more to expand in energy as domestic construction hit the skids. In 2006 it shelled out some 6.5 billion euros to buy a 20 percent stake in Repsol.
Itiniere may well have been sold off so the company can keep its stake in Repsol. Russia’s Lukoil has been moving in on Repsol to give them a stronger foothold in Europe as well as South America. Russian interest prompted the Spanish government to say it would fight to keep the company independent and Spanish.
Sacyr sells to Citigroup