Shikun & Binui (TASE: SKBN) today announced that it has received a binding offer to buy out its 21.6% stake in the Texas toll road project franchisee (SH 288). The offer was made by Spanish infrastructure company ACS, another project partner, at an overall franchise valuation of $1.95 billion.
This valuation would bring Shikun & Binui’s stake to $421 million. The comôany has invested some $100 million in the project, so the offer represents a return on investment that has more than quadrupled in just five years.
Shikun & Binui’s share price is currently up more than 11% on the Tel Aviv Stock Exchange.
“If the company decides to accept the offer and enters into a binding sale agreement, this could result in a material gain in the company’s financial statements,” Shikun & Binui said.
Shikun & Binui has been asked to respond to the offer by October 20, 2022. If the deal is completed, it will be completed by December 31, 2022. Shikun & Binui says it is reviewing the offer and that acceptance is conditional on negotiations between the parties being completed, on obtaining regulatory approvals and on other conditions customary in such transactions.
SH 288 is a primary access road to downtown Houston and the Texas Medical Center. The area suffers from heavy traffic congestion, especially in the morning and evening, with an average traffic density of 150,000 to 180,000 vehicles per day.
The toll lanes project included the reconstruction of a major interchange between SH 288 and a Houston ring road, and the addition of rapid toll lanes on a 10-mile section from downtown Houston to the Harris County border and Brazoria County.
In a recent interview with “Globes”, Shikun & Binui CEO Tamir Cohen commented on the possibility of the sale of the company’s stake in the Houston project, saying, “We are not married to any assets. In a good deal, we will unlock value in any Shikun & Binui asset.”
Published by Globes, Israel business news – en.globes.co.il – September 20, 2022.
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