Shikun & Binui (TASE: SKBN) have been approached by the Spanish infrastructure company ACS to sell their 21.6% share in the Blueridge Transportation Group (BTG) – the concessionary company for a 17-kilometer segment of the SH-288 highway in Houston, Texas, that includes two toll lanes in both directions . It provides key access to downtown and the Medical Centre. The area is typically congested with traffic and has an average daily traffic of 184,000 vehicles. 

ACS is one of the largest of its kind in Spain and is listed on the Madrid Stock Exchange, with current value being at around 6.5 billion euros. The company have recently increased its stake by purchasing 44.65% stake in BTG, making it the largest shareholder with a total share of 66.3%. The remaining part belongs to Shikun & Binui and another Israeli firm – Klal Insurance (13%).

The offer made to Shikun & Binui is based on a valuation of $1.95 billion, which makes its stake worth over $420 million. If the deal goes through, Shikun & Binui will make about $350 million in profit. The deadline for Shikun & Binui’s response to the offer is October 20, and the deadline for the deal’s completion, assuming it is to be finalized, is December 31 of this year. This offer will likely be welcomed by the shareholders as the proceeds will help to reduce the firm’s debt. Following the announcement of the news to the Tel Aviv Stock Exchange, the share price of the company jumped above 10%.