September 18, 2017 / 11:45 AM / a year ago

Spain's OHL in contact with China State on possible buyout

MADRID (Reuters) - Spanish builder OHL (OHL.MC), 51 percent owned by the Villar Mir family, said on Monday it had been in contact with China State Construction Engineering (CSCE) (601668.SS) over potentially selling a stake, though no offer or decision had been made.

A man looks out of a window at the headquarters of Spanish builder OHL in Madrid, Spain, February 25, 2016. REUTERS/Andrea Comas/File Photo

Online newspaper El Confidencial reported on Monday the Villar Mir family was in advanced talks to sell the company to the state-held Chinese infrastructure group.

CSCE has expressed interest in potentially buying a stake in OHL and has requested access to certain documentation for review, OHL said in a statement to the market regulator.

The potential deal comes as creditors increase pressure on the Villar Mir company over mounting debts, El Confidencial said, citing unidentified sources close to the talks.

Credit Agricole, Santander, HSBC and Deutsche Bank have warned Grupo Villar Mir that the company has short-term debt obligations worth some 500 million euros ($597 million), it said.

Villar Mir was not immediately available to comment on the report of creditor pressure.

OHL stock reversed earlier gains after confirming the report, falling around 3 percent to 3.4 euros at 1140 GMT.

Reporting by Tomas Cobos; Writing by Paul Day; Editing by Mark Potter and Susan Thomas

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