Shareholders of family-controlled infrastructure firm Ferrovial have approved the merger with its subsidiary company Cintra, decreasing the del Pino family's holding by 14% to 44%.
The deal sees shareholders in Cintra offered one Ferrovial share for every four they currently hold in Cintra. The new company will operate under the name Ferrovial SA and the merger also allows for the creation of a new company, Cintra Infrastructures, which will control the toll road assets.
"The merger benefits the shareholders of both companies because they will participate in a larger company, which is more efficient, stronger, better diversified and with much better access to capital markets. They will also benefit from a company with increased share liquidity and a more stable stock market valuation," said second-generation Ferrovial chairman Rafael del Pino Jr.
When the merger was first proposed in August, it attracted some controversy for the apparently low value placed on Cintra. (Click here to read our coverage of the story) However, today's statement said the banks overseeing the merger had agreed the share swap price was fair. It is expected the merger will be completed by the end of the year.
Ferrovial was founded in 1952 by Rafael del Pino (pictured) and is now one of Spain's largest companies with 2008 revenues of ï¿½14 billion. Rafael was chairman until his death last year when he was succeeded by his son Rafael Jr. (Click here to read our coverage)
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