Mota-Engil is preparing a capital increase of 100 million euros, giving space to the new shareholders, the Chinese state construction giant CCCC, to strengthen its stake. The operation will be voted on this Thursday at a shareholders’ meeting and its approval is guaranteed since the Mota family is the largest shareholder.
China Communications Construction Company (CCCC) reached an agreement in August last year with the holding company Mota Gestão e Participações (MGP) to acquire 23% stake in the Portuguese construction company. For participation of around 55 million shares, CCCC paid 169.4 million euros at the time.
To avoid new shareholders having to launch a takeover bid on the company, it was agreed that Mota-Engil would carry out a capital increase to be fully subscribed by the Chinese group. It is this authorisation that the company is now seeking from the shareholders at the general meeting to be held this Thursday at 5 pm in Porto.
After the capital increase, CCC will own about 30% of Mota-Engil, but MGP will remain the largest shareholder with about 40%. CCCC’s position will be acquired “at a price that reflects a valuation that is far above the current market price,” the company says, stressing that the operation “is based on the group’s valuation of around 750 million euros. The market value of Mota-Engil is currently 332.7 million euros.
According to the companies, the agreement and strategic partnership between Mota and CCCC will allow “a reinforcement of the financial, technical and commercial capacities of the Mota-Engil group in order to increase its activities in all markets and open new opportunities for new developments.”