Brisa’s Board Says Mello Bid Price in ‘Reasonable Range’

Brisa-Auto Estradas de Portugal SA’s board said a bid from a group led by its largest shareholder to acquire the entire company is within “a reasonable range.”

“Given the current context,” the offer price of 2.66 euros ($3.51) a share “is within a reasonable range of the intrinsic value of the company,” Brisa, Portugal’s biggest toll-road operator, said today in a regulatory filing. The board said it will maintain a position of “neutrality” towards the offer.

Jose de Mello SGPS SA, a holding company for one of Portugal’s richest families, and Aeif Apollo Sarl, through their Tagus Holdings Sarl venture, last month, made the offer which values the company at 1.6 billion euros ($2 billion).

Jose de Mello, with a 30.48 percent stake, is Brisa’s largest shareholder, according to a regulatory filing April 9, while Aeif Apollo holds 19.09 percent. Combined they have 54 percent of voting rights in Brisa, which is based near Lisbon.

The board said it “recognizes that the offer price doesn’t entirely reflect the potential long-term value” but it also “doesn’t fully take entirely into consideration a possible serious deterioration of those conditions.”

The offer could be an opportunity for shareholders interested in reducing their exposure to Brisa and to Portugal’s economic risks, the board said. The bid could also herald changes to the company’s dividend policy, it said.

On April 2, the company’s board had already said it would adopt a “neutral approach” to the bid and would abstain “from implementing measures that may either frustrate or facilitate” the offer.’’

To contact the reporter on this story: Anabela Reis in Lisbon at areis1@bloomberg.net.

To contact the editors responsible for this story: Jerrold Colten at jcolten@bloomberg.net

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