Vinci Wins Portuguese Airport Operator With EUR3.08 Billion Bid

By Carla Canivete

LISBON--French construction company and highway operator Vinci SA (DG.FR, VCISY) will pay 3.08 billion euros ($4.07 billion) to take over state-run airport operator ANA-Aeroportos de Portugal SA, the Portuguese government said Thursday, capping a series of privatizations that has raised billions of euros for the Portuguese state.

The sale, announced following a nine-hour cabinet meeting, is part of a privatization program Portugal agreed to undertake to secure a EUR78 billion bailout package from the European Union and the International Monetary Fund.

The country has already sold a 21% stake in utility company EDP-Energias de Portugal SA (EDP.LB) for EUR2.7 billion to China's Three Gorges Corp. A week ago, Portugal shelved the sale of flagship carrier TAP Air Portugal, after its only prospective buyer didn't meet financial conditions set for a deal. Still, the sales so far have raised more than EUR6 billion for the Portuguese state, surpassing the original EUR5.5 billion goal under the bailout plan.

Vinci's winning bid for ANA confirms a Dow Jones Newswires report last week pegging the company as the frontrunner to buy the Portuguese airport operator.

The bid represents around 15 times the company's earnings before interest, taxes, depreciation and amortization, or Ebitda, in 2011, which stood at EUR199.8 million. The average multiple of recent deals in the sector is eight times 2011 Ebitda, according to government and airline industry officials.

Other bidders included Zurich airport operator Flughafen Zuerich AG (FHZN.EB, FLGZY), German airport operator Fraport AG (FRA.XE) and Argentinian airport operator Corporacion America, according to people familiar with the deal.

Vinci, which has concessions for stadiums, car parks, roads and tunnels across Europe, has said it is seeking to expand its airports business. It operates airports mostly in France but also in Cambodia. The business generated EUR150 million in revenue last year.

Including the Portuguese operations, the company said sales for its airports activity this year will come to EUR600 million, with Ebitda at around EUR270 million. The deal adds 10 airports to Vinci's business, bringing the total operated by Vinci to 23.

--Mimosa Spencer in Paris contributed to this article.

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