The ACC intends to buy a minority position in the Portuguese construction company to expand its international presence. António Mota says he had no contact with the Chinese state company.
China Communications Construction Co (ACPC), a publicly traded Chinese company, is considering buying a minority stake in Mota-Engil, Bloomberg reported, citing family members of the matter.
According to the news agency, the ACPC has already started talks with advisors to make this purchase, although they are still at an early stage. The goal, according to the same source, is to expand the international presence of the Chinese state.
Bloomberg reports that it is not yet certain that the Chinese company will come up with a formal offer to buy this 30% stake and that other stakeholders may even emerge. At market prices, a 30% stake in Mota-Engil is valued at around 130 million euros.
The news does not refer to whom ACPC may buy this 30%. Mota-Engil is 64.68% controlled by the Mota-Engil family and, in statements to Bloomberg, António Mota (chairman of the Portuguese construction company) says that he had no contact with the Chinese state-owned company. The remaining 35% is available on the stock exchange, with two qualifying holdings: Mutima Capital with 3.18% and Norges Banks with 2.65%.
Official source of the Portuguese construction company declined to comment on the news, stating that this is a matter that concerns shareholders. Bloomberg failed to obtain an official reaction from the ACPC.
Mota-Engil shares have a 12% gain this year, giving the company a market capitalization of 429 million euros. This Wednesday, Mota-Engil shares still do not react to this news, following a modest gain of 0.38% to 1.84 euros.
Despite having Chinese public capital, the ACPC is listed on the Hong Kong Stock Exchange. It is present in various areas of the construction sector, such as roads, ports and dredging.
The company has a market value of 146.8 billion Hong Kong dollars (16.9 billion euros) and this year accumulates a 15.4% devaluation on the stock market. The market value of ACPC is almost 40 times higher than that of Mota-Engil.
There are already several major Portuguese companies that have Chinese shareholders with considerable or even controlling positions. This is the case of EDP, BCP, REN, Fidelidade and Luz Saúde.