OHL clings to the euro per share after the agreements with Aleática and Villar Mir

  • The announcement comes after the recent sale of FerroAtlántica
  • The maturity of the debt to be satisfied is set in September 2020

OHL clings to euro per share after two key agreements for the development of your business. On the one hand, Grupo Villar Mir is committed to doing everything possible to pay off the debt this year that it maintains with the listed company, while in Mexico an agreement has been reached with Aleática, the heir to its concession business, for a highway over which they had an open dispute pending arbitration. The shares have risen 8% to 1.09 euros, but have settled for closing 0.89% down at 1.005 euros.

The Grupo Villar Mir has reached an agreement with OHL, a construction company of which it is the first shareholder, for which it undertakes to make its “best efforts” to liquidate within this year the 109.9 million euros that it owes to this company and, in any case, before September 30, 2020, the due date set for this liability.

The Juan Miguel Villar Mir corporation reaches this commitment with OHL after it recently agreed to the sale of FerroAtlántica to the TPG Sixth Street Partners fund for 170 million euros.

OHL already advanced a few weeks ago, on the occasion of its shareholders’ meeting, that your controlling shareholder had agreed to pay off his debt between this year and next thanks to the divestment plan I had in place. The construction company notified the National Securities Market Commission (CNMV) on Monday of the agreement formalized with the corporation that, in addition to “putting an end to the existing discrepancies”, gives OHL a “solid creditor position”.

The construction disclosed in its 2018 annual report this debt, related to Pacadar, a firm of the Villar Mir group dedicated to the construction and assembly of precast reinforced concrete. As indicated at the time, OHL had already claimed part of the liability, about 35 million, through the courts.

By virtue of the agreement signed now, the Villar Mir group acknowledges that it has two debts with OHL, one of 75.60 million euros, and another, through Pacardar, which currently stands at 34.32 million after a payment of 537,510 euros that the corporation made last April. In both cases, the liabilities generate a fixed annual interest rate, in the case of the first 5.5% since July 2016, and 5% and since February 2018 in the case of the second.

In addition, Villar Mir increases the guarantees on this liability, so that Pacardar’s shares not only cover the debt of this company but also the other, and the group provides other additional.

“The maturity of both debts is September 30, 2020, without prejudice to the commitment of the Villar Mir group to make its best efforts to meet the payment within the current year 2019”, indicates OHL.


Villar Mir and OHL agree on the solution to this dispute after at the end of last year the corporation owned by Juan Miguel Villar Mir acknowledged that it was analyzing the eventual sale of the 34.6% stake in OHL.

This is not the first time that Villar Mir acknowledged showing signs of interest in the construction company, since in 2017 it confirmed that it was received by China State Construction Engineering Corporation (CSCE), one of the largest construction groups in the world.

OHL, on its side, achieved this collection commitment after in 2018, after sell Concessions and pay off your debt, put the “most important pillars” for the recovery of the company that trusts that it will “consolidate” this year.

“The ‘tsunami’ has already passed”said the president of the construction company Juan Villar-Mir at the last meeting. “From now on, almost certainly, what remains is good news,” he added.


In addition, this Monday it was known that OHL has resolved its discrepancies with Aleatica by a highway in Mexico and with Grupo Villar Mir (GVM) as a result of several loans granted in 2016 to its largest shareholder with a balance of more than 110 million plus interest. The listed company has signed with the concessionaire Aleatica -group created after the sale of OHL Concesiones to the Australian fund IFM, a transactional agreement by which they resolve by mutual agreement all their differences in relation to the construction of the High Specification Highway Atizapán-Atlacomulco in the State of Mexico.

At the beginning of April, Aleatica terminated a contract with OHL in the works of the Atizapán-Atlacomulco corridor, alleging “serious breaches” by OHL, such as the suspension of the relevant construction works or the failure to demonstrate the “correct use” of some 48.1 million dollars of advance payments. In parallel, OHL pointed out that prior to this termination there had been open an arbitration process against Aleatica for non-compliance and non-payment in the contracts of both channels.

In addition to the controversy in Mexico, OHL and Aleatica keep open the discrepancies and arbitration by the development of the Río Magdalena Highway in Colombia.

Likewise, OHL has announced this Monday that it has signed an agreement with the Villar Mir Group (GVM) that puts an end to the discrepancies that they maintained regarding loans that the construction group granted to its maximum shareholder in 2016 and whose balance amounts to 110 million more interests.