The 865m euro cash and share deal by Albertis Infraestructuras to buy OHL's Chilean and Brazilian network has been warmly greeted by agencies and debt managers. It gives the former a big slug of the Brazilian industry, which should position it well as more states turn to the private sector to fix their crumbling, potholed road networks.
It looks like a neat way for OHL to pay down a lot of debt and get access to some solid dividend earnings. Fitch, for one, gave a very positive evaluation.
Yet, the sector is not easy to deal with thanks to complex legislation and traffic growth has not been as rosy as once predicted. Project finance bankers had long scratched their head over the very high bids put in by the Spanish company.
Supporters of the deal insisted that with big growth in car usage and solid revenues plus inflation linking in revenues would compensate.
It seems that the naysayers have been borne out.