Ferrovial looks to the energy business. The company that Rafael Del Pino pilots has entered the bid for the electricity transmission networks of the Chilean company Colbún, according to reports to Five days financial sources. This is an operation valued at more than 1,000 million euros.
Chilean power company Colbún, built on two Endesa plants in the country, has decided to divest itself of its power transmission business. It informed the regulator of the southern country’s stock market, the Financial Market Commission (CMF), that it had entrusted its sale to JP Morgan and BTG Pascual.
Ferrovial has been one of those interested. And it has entered the process with force. It competes against the large Chilean electricity grid owner Transelec and several international pension funds. A Ferrovial spokesperson has declined to comment.
The assets for sale are a network of 899 kilometers of transmission lines and 27 electrical substations. The company is listed on the Chilean Stock Exchange and its main shareholders are the Matte family and the Forestal Cominco company. It also has 25 generation plants in Chile and Peru, with a capacity of 3,900 megawatts, which are not for sale.
Ferrovial already has interests in the Chilean electricity grid market. It has three assets in the country, totaling 408 kilometers in operation and 512 kilometers under construction. He owns the Transchile line, deployed in the south of the country, with 204 kilometers and supplies electricity to 300,000 homes. In July 2018, a concession was awarded to build and operate a 250-kilometer line for 125 million dollars. And in February 2020, the construction, operation and maintenance of a three-kilometer line was completed.
Power grids are one of the areas in which the Del Pino family company has set out to grow in the coming years. In fact, the group has just launched a new division, Ferrovial Construcción Energía, aimed precisely at the business of electricity networks and renewables.
In other words, Ferrovial tries to change its business. While launching into the energy business, at a time when it is in vogue with investors, it tries to give the final finishing touch to the divestment of its services division. In 2019 it sold its business in this area in Australia to a consortium formed by ACS and Apollo, after having tried to sell the entire division for more than 3,000 million.
It tries this year to reactivate the process, after having decided to replace Goldman Sachs by Morgan Stanley as coordinator of the operation.
The strategy now is to divide its services by businesses and geographies and it is already working to get rid of the waste management area and Amey, its subsidiary in the United Kingdom.
Thus, Ferrovial’s objective is to focus more purely on its infrastructure business and abandon the aforementioned services. Energy assets and especially those such as electrical networks or even fiber optic networks have been one of the star assets in the market in recent years.