The stakes being sold represent 46% of the total equity in the M4 and 75% of the M3. Ferrovial will keep a 20% equity stake in both concessions and a position as its main industrial partner.
Ferrovial said that the transaction is part of its asset rotation strategy for mature concessions.
Approvals from Irish authorities and financing institutions is needed before the transaction can close. Until then, Ferrovial’s toll road subsidiary Cintra will hold a 66% stake in the M4 concessions and and 95% stake in the M3. DIF is already a shareholder in the M4 with a 34% stake before the transaction.
DIF was founded in 2005 and has about €3bn of funds under management with investments in Europe, North America and Australia.
The M4 and M3 toll road concessions were awarded to Cintra in a consortium with SIAC in 2003 and 2007 respectively. M4 entered into commercial operation in 2005 and concessional period will expire in 2033, while M3 began operating in 2010 and the concession will run until 2052.