MasTec Announces Sale of Spanish Subsidiary Sintel S.A.

Strategic Insights -

MasTec, Inc., a leading telecommunications and infrastructure service provider, has agreed to sell its Spanish subsidiary Sintel S.A. to a group of investors led by Inversiones Ibersuizas S.A. The sale includes all of Sintel's operations in Spain, Argentina, Chile, Colombia, Peru, Puerto Rico, and Venezuela. This strategic decision aims to concentrate MasTec's capital and human resources in its North American operations, which continue to experience significant growth. The successful closing of the agreement is expected to strengthen MasTec's balance sheet, reduce financial exposure in foreign markets, and enable the expansion of its North American operations.

Key Takeaways:

  • MasTec has agreed to sell its Spanish subsidiary Sintel S.A. to a group of investors led by Inversiones Ibersuizas S.A. for a fixed purchase price plus assumption of all consolidated debt.
  • The sale includes all of Sintel's operations in seven countries: Spain, Argentina, Chile, Colombia, Peru, Puerto Rico, and Venezuela.
  • The agreement includes a teaming arrangement with Sintel to continue working together on selected projects in Sintel's Latin American markets.
  • As part of the sale, MasTec will concentrate its capital and human resources in its North American operations, which are experiencing significant growth.
  • The closing of the agreement is subject to satisfactory due diligence and a number of other contingencies, with an anticipated closing date before December 31, 1998.

Statistics:

  • Seven countries are covered by the sale of Sintel S.A., including Spain, Argentina, Chile, Colombia, Peru, Puerto Rico, and Venezuela.
  • The agreement includes a teaming arrangement with Sintel to continue working together on selected projects in Sintel's Latin American markets.
  • The sale aims to strengthen MasTec's balance sheet and reduce financial exposure in foreign markets, with an anticipated net benefit of reduced financial exposure.
  • MasTec's North American operations continue to experience significant growth, driving the company's strategic decision to focus resources in this region.

Sources:

  • "MasTec, Inc. Announces Agreement to Sell Spanish Subsidiary Sintel S.A.," Business Wire, October 16, 1998.