Obrascon Huarte Lain (OHL) will call a general shareholders meeting to submit the transaction for its prior approval in compliance with the Spanish Capital Companies Act.
The closing of the transaction is also conditioned on, among others, obtaining the corresponding anti-trust authorisation from the Mexican authorities, obtaining certain waivers from creditors, and the approval and launch by IFM Investors or a subsidiary, of a Public Tender Offer for the share capital in OHL Mexico not held by IFM Investors as of the closing date, as a result of the indirect change of control in OHL Mexico.
Grupo Villar Mir, 54.5% majority shareholder, supports the transaction and has stated that it will exercise its voting rights and vote in favour of the approval of the transaction.
In accordance with the above, OHL expects that closing of the transaction will occur during the first quarter of 2018.
The Spanish group said “the important income that this transaction will provide to the OHL Group will not only leave the Company without net recourse debt, but will also result in a positive treasury position.”
Following the announcement Moody's upgraded to B3 from Caa1 the corporate family rating of the OHL group. Concurrently, the ratings agency has upgraded to B3-PD from Caa1-PD the probability of default rating and to B3 from Caa1 the ratings on the senior unsecured instruments. The ratings remain on review for further upgrade.
The Australian institutional manager entered into an agreement with OHL in October.
Meanwhile, IFM Investors has opened a new office in Seoul, Korea. The Australian investor’s decision to establish a Korean office, its eighth globally, is a recognition of its growing local institutional client base and a desire to better service their needs, according to chief executive Brett Himbury.
Kelly Ki Jeong Lee has been appointed a client relationship director and brings significant experience across life insurance, asset management and financial markets.