Citi Infrastructure Gains Control of Spanish Toll Road

MADRID (Reuters) – Pear Acquisition, on behalf of Citi Infrastructure Partners (CIP), said on Tuesday it had gained control of Spanish Itinere (ITIE.MC) in a cash deal worth 2.87 billion euros ($3.98 billion).

CIP, a private equity fund owned by Citigroup (C.N), received acceptances worth 47 percent of Itinere and expects to receive an additional 11 percent in the next few days.

Separately, Citi said it had acquired 4 percent of Itinere, meaning that its total stake will reach 62 percent once the deal is completed.

The fund struck a deal with Itinere’s owner, Spanish builder Sacyr (SVO.MC) last year, which also gives it an option to fully acquire the toll road firm once financial conditions improve.

Citi also agreed to take on 5 billion euros of Itinere’s debt as part of the deal. ($1=.7216 Euro)

(Reporting by Tracy Rucinski; Editing by Simon Jessop)