French toll-road shares go on sale

THE network of French toll-roads leading to Alpine ski resorts and the Mediterranean coast will go on the block today, as British bank HSBC begins marketing shares in Societe des Autoroutes Paris Rhin-Rhone.

The company is raising up to €1.35bn (£940m) through the sale of new shares equal to up to 32.5% of the enlarged capital in an initial public offer valuing the group at €4.15bn.

Some 70% to 30% of the shares will be available to international institutional investors through a placing, though this will be cut back if French retail demand proves strong.

The French government is offering up to 36.7m shares at a price in the range of €38 to €43 for institutions, and €37 to €42 for French retail investors.

The cash will be used to pay down the company's debts of €6.79bn and rebuild shareholders' funds of €150m.

Its net profits last year were €102m on revenues of €1.47bn, but strong traffic growth and reduced debts should enable rapid increases in earnings.

The institutional placing will close on 23 November, with first trading taking place the next day.