Nov. 22 (Bloomberg) -- Mota-Engil SGPS SA, Portugal’s biggest construction company, rose to the highest in almost four years in Lisbon after saying it will sell shares in its African subsidiary.
The stock climbed 8.45 percent to 3.915 euros, the highest close since January 2010. Trading volume was more than five times the three-month daily average.
Mota-Engil said yesterday it will will offer its shareholders about 20 percent of the unit’s shares. It also plans to carry out an all-cash share-capital increase of Mota-Engil Africa reserved to its shareholders and will keep a majority stake.
“We expect the market to appreciate the move although the question mark remains in terms of the size of the capital increase, and consequently on the valuation of Mota-Engil Africa,” Bruno Silva, an analyst at Banco BPI, said in a note today. “The new company will be listed in a European market, which we expect to be in the U.K.”
A Mota-Engil spokesman today declined to provide details about where the company will conduct the share sale or the timing of the operation.
Mota-Engil’s nine-month net income rose 50 percent from a year earlier to 37.9 million euros ($51 million) while revenue advanced 2.4 percent to 1.66 billion euros, it said in a separate statement yesterday.
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