ACS (AO) | Hold | Chicago Skyway, Abertis' next move?

Research evidence excerpt

ACS (AO) | Hold | Chicago Skyway, Abertis' next move?

UR22.7bn net debt at the

end of last year), with a contribution of a quarter of our estimated attributable enterprise value for ACS.

The Chicago Skyway and Abertis' previous three attempts to participate in its capital

The Chicago Skyway is a 12.6km elevated toll road connecting I-94 (Dan Ryan Expressway) in Chicago with I-90 (Indiana Toll Road)

on the Indiana border. The facility includes a 5.6km main elevated structure that crosses the Calumet River.

Built in 1958, the Skyway was operated and maintained by the City of Chicago's Department of Streets and Sanitation until 2005.

In January of that year, it awarded its operation for 99 years, until 2104, to Ferrovial and Macquarie after they submitted a bid of

USD1.83bn. Abertis participated in the process with a much lower bid of USD505m.

Abertis' second attempt was in 2015, when Ferrovial and Macquarie sold the Chicago Skyway to the Calumet Concession Partners

consortium, formed, with equal shares, by the Canadian pension funds Omers, CPPIB, and OTPP, for USD2.84. The third attempt

was in 2022, when Abertis fell short of Atlas Arteria's offer for the 66.67% stake sold by Omers and OTPP.

Drilling into the Chicago Skyway's current disposal process

So far in the Chicago Skyway disposal process, the Canadian fund Ontario Teachers’ Pension Plan (OTPP), which owns a 33.33%

stake in the asset, has declined to exercise its right of first refusal at the price Atlas Arteria paid in 2022 (EUR1.76bn). This allowed

the transaction to be opened to the market, allowing both industrial groups and financial investors to express their interest.

The transaction is further complicated by IFM's hostile bid for Atlas Arteria (the former already owns 34.5% in the latter) and