Israel’s Shikun & Binui gets offer for US road asset

 Israel’s Shikun & Binui gets offer for US road asset

Israeli infrastructure major Shikun & Binui has received a binding offer for its 21.6% interest in a franchisee that manages toll lane projects in Texas.

The offer was made by Spanish infrastructure company ACS, which is also a partner in the project.

The offer values the franchisee at $1.95 billion and Shikun’s stake at $421 million, the Israeli company said in a filing on the Tel Aviv Stock Exchange (TASE).

Following the disclosure, the company’s share price on the TASE jumped 11%.

The SH 288, the toll road in Texas, is an approach road to central Houston and to the Texas Medical Center. The road reportedly remains congested and sees between 150,000 and 180,000 vehicles everyday.

The Israeli company has to respond to the binding offer by 20 October 2022. If it accepts the offer, the deal will be closed by the end of the calendar year.

Shikun & Binui reportedly invested $100 million in the project, which means the offer is more than four times the money it has ploughed in so far.

“If the company decides to accept the offer and enters into a binding sale agreement, that could lead to a material gain in the company’s financial statements,” Shikun & Binui said in its filing.

The Israeli company said the acceptance of the offer will be subject to negotiations and regulatory approvals.

Aman Malik

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