Mota Engil SGPS S A : Engil informs about negotiations of a strategic partnership and investment agreement
August 27, 2020 at 02:56 am EDT
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MOTA-ENGIL INFORMS ABOUT NEGOTIATIONS OF A STRATEGIC PARTNERSHIP AND INVESTMENT AGREEMENT
MOTA-ENGIL S.G.P.S., S.A. ("MOTA-ENGIL") informs that it is in the last stages of negotiation of a partnership and investment agreement (the "Agreement") with one of the largest infrastructures groups in the world (top five), with significant activity worldwide, aiming such group (the "New Partner") to become a relevant shareholder and a long-term partner of the MOTA-ENGIL.
In the context of the envisaged Agreement, MOTA GESTÃO E PARTICIPAÇÕES, SGPS, S.A. (MGP), the controlling shareholder of MOTA-ENGIL, has accepted to sell a relevant stake in the share capital of MOTA-ENGIL at a price that reflects a valuation which is high above the current market price.
Also pursuant to the Agreement, if concluded successfully - which is expected to occur shortly -, and assuming that the regulatory clearances and several other conditions precedent will be met, the New Partner:
will enter into a partnership and investment understanding with MOTA-ENGIL to jointly develop commercial opportunities;
will be committed to subscribe a relevant stake in a share capital increase of up to 100 million new shares that will be submitted for deliberation in a General Meeting, to be called shortly.
Following such share capital increase:
a stake of around 40% of the share capital will be attributable to MGP, showing a full commitment and alignment with its historical position in MOTA-ENGIL;
the New Partner will reach a stake slightly above 30%.
This new configuration and the framework of this partnership, which is based on MOTA-ENGIL's valuation of circa €750 million, will enhance the financial, technical and commercial capabilities of MOTA-ENGIL in order to upscale its activities in all markets and will open new opportunities for further developments.
MOTA-ENGIL, as the leading Portuguese infrastructure multinational group, will strengthen its commitment, based on its 75-year culture and corporate values, towards its clients, employees, communities, environment and all other stakeholders.
Porto, August 27th, 2020
THE REPRESENTATIVE FOR THE MARKET RELATIONS
LUÍS SILVA
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Mota-Engil SGPS SA published this content on 27 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2020 06:56:00 UTC
Mota-Engil, SGPS, S.A. is a group organized around 6 sectors of activity:
- Engineering and Construction: Mota-Engil, SGPS, S.A. has developed construction projects in some fifty countries and is present on three continents (Europe, Africa and Latin America) where it has asserted its technical competence and reputation, excelling in the construction of various infrastructures such as roads, freeways, airports, ports, dams and railroads ;
- Industrial Engineering Services: the group has capitalized on its recognized presence and experience since 1998, with a proven ability to operate in numerous markets, reflected in medium-term contracts of between three and eight years;
- Environment: Mota-Engil, SGPS, S.A. began its activities in the environmental sector in Portugal in 1995, through the company SUMA in the urban waste management and collection segment, and added its skills to those of the company EGF, a leader in waste treatment and recovery. Internationally, Mota-Engil is increasingly developing its activities in this sector, in markets such as Angola, Mozambique, Cape Verde, Brazil, Oman and Côte d'Ivoire;
- Mota-Engil Capital: a business unit whose aim is to optimize value creation for the group through investment diversification, underpinned by integrated management of a range of assets and projects complementary to the Engineering, Construction and Environment segments.
- Mota-Engil Mext: unit responsible for differentiated areas such as Real Estate, Agroforestry Production and Energy. It also aims to strengthen investment in innovation and accelerate global transformation;
- Concessions: Mota-Engil, SGPS, S.A. operates, through Lineas and its subsidiaries, a network of some 2,500 km of roads and freeways, including the two bridges of the city of Lisbon. The business extends to international markets, mainly in Latin America.
MOTA-ENGIL, SGPS, S.A. 
