Tagus to Pay ‘Fair Value’ for Brisa Shares, Alura Says

Tagus Holdings Sarl will pay a reasonable price for the remaining shares of Brisa-Auto Estradas de Portugal SA before removing the Portuguese toll-road operator from the stock market, Alura Capital Partners predicted.

“Alura is confident that Tagus will end up paying a fair value for shares currently held by the minority shareholders of Brisa,” Alain Demarolle, whose Alura Capital hedge fund holds a stake of less than 2 percent in Brisa, said in a telephone interview today. He declined to say what a fair price would be.

Tagus, a venture of Portuguese holding company Jose de Mello SGPS SA and Arcus Infrastructure Partners, asked Portuguese regulator CMVM on Sept. 4 for permission to remove Brisa from trading in Lisbon after securing 92 percent of the highway operator’s voting rights in a 2.76 euros-a-share bid for the company.

Tagus said on Feb. 11 the CMVM promised to approve the request to delist Brisa if shareholders that didn’t sell their shares in last year’s bid were offered an adequate exit mechanism. The CMVM said today that Tagus has until March 1 to submit an exit mechanism to the remaining shareholders of Brisa.

“The CMVM has clearly indicated that it will guarantee the protection of the minority shareholders in Brisa and that has been crucial to ensure that these shareholders get a fair price for their shares,” said Demarolle, a former adviser to ex-French Prime Minister Dominique de Villepin.

Demarolle declined to state the exact size of Alura’s stake in Brisa.

(Updates with Tagus proposal deadline in fourth paragraph.)
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