Trio of banks forced to shelve deal work on Spanish flotation

Michael Bow
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CITIGROUP, Morgan Stanley and Santander were yesterday forced to scrap a deal to list Spanish firm Isolux Corsan after the company decided to put the flotation on ice.

The banks were joint global co-ordinators on the proposal, which would have raised €600m (£451m) to pay down Isolux’s debt pile.

CaixaBank, Natixis and Societe Generale were also employed as managers on the deal.

“The company believes that the preliminary valuation indications do not recognise the full potential of the company's asset base at this time. Furthermore, since the company does not require additional capital in the near term, it has elected to wait for more favourable conditions,” Isolux said.

The company intended to list on Spain’s main stock exchanges, Madrid, Barcelona, Bilbao and Valencia, despite making almost 80 per cent of its €3.2bn of annual revenues outside Spain.

It operates infrastructure assets like toll roads and car parks in places like South America and the US, in addition to Spain. It is currently working on a large scale infrastructure project to hook electricity cables over the Amazon River in Brazil to connect Manaus and Macapa.

Madrid is expected to see the listing of airport operator Aena later this year, set to be one of the largest listings in Europe in 2015.