Ferrovial hopes to cut back financing prices with its departure to the Netherlands

The firm justifies its transfer at a time when the steadiness sheets of central banks are contracting Its thought is to entry a broader investor base The relocation of the corporate “will deliver with it a possibility to extend the notoriety of its model each in Europe like in the remainder of the world”

With the relocation of its guardian firm to the Netherlands, Ferrovial seeks to enhance its financing situations, at a time when the steadiness sheets of central banks are shrinking, in addition to entry a “broader investor base”, in accordance with the doc detailing your challenge.

“Ferrovial believes that corporations headquartered within the Netherlands have benefited from decrease volatility of their financing prices because of a extra steady nation danger premium in comparison with different European nations. This decrease volatility ought to imply that sooner or later financing prices within the firm’s debt points will likely be diminished and, in the long term, additionally in enhancements within the complete price of capital”, he factors out.

The 92-page doc, during which the corporate explains the operation that can entail the switch of its headquarters from Spain to the Netherlands, additionally states that the relocation “will deliver with it a possibility to extend the notoriety of its model each in Europe as in the remainder of the world”

He factors out that the Netherlands “is a serious hub the place many multinational corporations with ties throughout the continent come collectively,” and he anticipates {that a} better presence there “will give it entry to an excellent better pool of worldwide expertise” and likewise to a “broader investor base”.

The third benefit he places ahead is that the Netherlands is an “optimum platform for itemizing within the United States”, which is one in every of his strategic goals.

US inventory itemizing

Ferrovial considers that the standing of a Dutch listed firm will facilitate the longer term admission to buying and selling of those self same shares within the United States and, if the situations for it are met, their inclusion within the US inventory indices.

In distinction, the shares of a Spanish firm listed in Spain can solely be traded within the United States via American Depositary Receipts or different oblique formulation, and American Depositary Receipts will not be eligible to entry US inventory indices.

92% of the investments dedicated by Ferrovial for the 2023-2027 interval are related to the US, with key development initiatives resembling the brand new Terminal One at JFK airport in New York, the I-66 freeway in Virginia and the North Tarrant Express freeway 35W 3C in Texas.

The firm, which is outlined within the doc as “a world participant with European roots”, considers {that a} better presence in North America will serve to “reinforce the notice of its model within the area, notably earlier than the States and native regulators, whose position within the awarding of recent initiatives is essential, and earlier than potential staff or collaborators”.

After recalling that the United States is thought for being one of many world’s largest transportation infrastructure markets and for having one of many largest funding communities on the earth, he careworn that on the similar time there are few native corporations specializing in the identical enterprise because the Ferrovial Group , which provide engaging funding alternatives within the capital markets.

Ferrovial’s “frequent cross-border merger challenge” offers that the General Shareholders’ Meeting approves the operation “inside a interval of six months” and that the conferences of this physique will likely be held “within the municipality the place the corporate has its headquarters or within the municipality of The Hague, Haarlemmermeer (Schiphol Airport), Rotterdam or Utrecht”.

Consequences for employees

In the doc, Ferrovial ensures that the “change of employer”, which can change into the department of Ferrovial in Spain, would be the “solely direct consequence for the employees”.

However, it offers that “sure staff voluntarily relocate to the Netherlands”, in addition to that others “be relocated and change into staff of different subsidiaries of the Ferrovial Group in Spain”.

It says that, in each circumstances, it might be “voluntary transfers or relocations, which might be carried out respecting the consolidated rights of employees and their working situations.”