Final bidders for Vinci’s $2.7 bln parking unit may include CPPIB, Teachers – Reuters

Final bids for French construction and concessions firm Vinci‘s parking concession business are due by early February, in a deal expected to fetch around 2 billion euros ($2.7 billion), three people close to the deal said.

Three to four bidders are still in the race, they added.

Potential buyers who are expected to submit bids include private equity firms KKR, Charterhouse and Ardian, infrastructure fund Antin and Canadian pension funds Ontario Teachers Pension Plan and the Canadian Pension Plan Investment Board (CPPIB), the sources said.

Some of the possible bidders have teamed up to form consortia, said two of the sources.

“A deal could be announced by late February,” said one of the sources, who spoke on condition of anonymity as the process is private.

Vinci, KKR, Charterhouse, Ardian, Ontario Teachers and CPPIB all declined to comment. Antin could not immediately be reached for comment.

Vinci Park operates 2,600 parking-lot assets in 14 countries and posted 615 million euros in revenue in 2012.

Analysts say the unit is profitable but exposed to the mature, slow-growing French market. A deal would enable Vinci to raise cash to pay back debt and invest in activities where growth is more promising, including in its airports business, according to a source familiar with the company’s strategy. ($1 = 0.7324 euros)

By Anuli Davies and Sophie Sassard

(Additional reporting by Gilles Guillaume, Natalie Huet and Matthieu Protard; editing by Keiron Henderson)

(This story has been edited by Kirk Falconer, Editor, peHUB Canada)

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