The Vallis closed investment fund plans to acquire medium-sized bankrupt construction companies in order to set up a larger company, Pedro Gonçalves, the fund’s manager told Portuguese weekly newspaper Sol.
After taking control of the companies, and paying off their debts, the fund will seek out synergies with its existing asset portfolio and set up a larger construction company with a greater competitive capacity.
The new company will seek out construction projects abroad, “because the amount of work available in Portugal is small and is getting smaller,” said Gonçalves, who previously worked for Portuguese construction Soares da Costa.
The three biggest companies in the sector in Portugal are Mota-Engil, Teixeira Duarte and Soares da Costa and, according to Gonçalves, the new company will be around the same size as Soares da Costa, the turnover of which is 900 million euros per year.
The Vallis fund, which was set up with support from banks, has already taken control of Edifer, which was unable to pay its creditors.
However, by the end of this year “three or four companies, with large turnover of between 100 million and 1 billion euros,” will become a part of the fund, said Gonçalves. (macauhub)