Shikun & Binui receives huge offer for Texas road project stake

Shikun & Binui toll road in Houston  credit: Aero Photo
Shikun & Binui toll road in Houston credit: Aero Photo

The offer for Shikun & Binui's 21.6% share of the rights in the SH 288 toll lanes project values the project at nearly $2 billion.

Shikun & Binui (TASE: SKBN) reported today that it had received a binding offer to buy its 21.6% rights in the franchisee for the toll lanes project in Texas (SH 288). The offer was made by Spanish infrastructure company ACS, another partner in the project, at an overall valuation for the franchise of $1.95 billion.

That valuation would make Shikun & Binui’s stake worth $421 million. The comפany has invested some $100 million in the project, so the offer represents a more than four-fold return on investment in just five years.

Shikun & Binui’s share price is currently up more than 11% on the Tel Aviv Stock Exchange.

"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 stated.

Shikun & Binui has been asked to respond to the offer by October 20, 2022. If the deal goes ahead, it will be completed by December 31, 2022. Shikun & Binui says that it is examining the offer, and that acceptance is conditional on negotiations between the sides being completed, on obtaining regulatory approvals, and on other customary conditions in such transactions.

SH 288 is a main approach road to central Houston and to the Texas Medical Center. The area suffers from heavy traffic congestion, particularly in the morning and evening, with average traffic density of 150,000-180,000 vehicles daily.

The toll lanes project included the reconstruction of a main interchange between SH 288 and a Houston ring road, and the addition of fast toll lanes on a 16 kilometer section from the center of Houston to the border between Harris County and Brazoria County.

In a recent interview with "Globes", Shikun & Binui CEO Tamir Cohen commented on the possibility of the sale of the company’s holding in the project in Houston, and said, "We’re not married to any asset. In a good deal, we’ll unlock value in any asset at Shikun & Binui."

Published by Globes, Israel business news - - on September 20, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Shikun & Binui toll road in Houston  credit: Aero Photo
Shikun & Binui toll road in Houston credit: Aero Photo
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