OHLA - Comment

In an interview with El Pais, Luis Amodio (OHLA Chairman) commented that OHLA anticipates a rise in orders from Europe as the post-COVID spending plans are enacted. Public officials are concentrating on the need to get funds allocated and spent quickly. Whilst there is no precedent for this type of spending by the EU, we have seen the EU fund infrastructure projects all over the Union; the difference here is the size and pace of the spending plans. Our expectation remains that infrastructure pending in both blocs will drive the OHLA order book in the medium term. OHLA expects the EU/US public spending plans will generate several years of strong performance in both Infrastructure and Real Estate.

Two other snippets of information from the interview, Amodio doesn’t rule out a bid for control OHLA in the future, but there are no plans. There is a process to prevent conflicts of interest with Caabsa, the Amodio construction business (headquartered in Mexico but active throughout Central and South America. This relationship will make advancing this region more of a challenge for OHLA. Finally, OHLA does not plan any additional divestments beyond those promised in the restructuring agreement.