Abertis says has finances to expand in Europe

By Carlos Ruano

BARCELONA (Reuters) - Spain's Abertis (ABE.MC: Quote, Profile, Research) said on Tuesday it had the financial muscle to expand its business in Europe and realise its goal of becoming a dominant toll-road operator in the region.

"Abertis is betting on growth and diversification," Chairman Isidre Faine told reporters ahead of an annual shareholders' meeting. "We're not vulnerable to the lack of liquidity in the financial markets."

The group, which refinanced its debt last year and this week will sign a new credit line of 1 billion euros ($1.56 billion), has debts of 12.5 billion euros, 59 percent of which is earmarked for projects.

It has net debt of 5.5 times EBITDA (earnings before interest, tax, depreciation and amortisation) -- far inferior to the sector's average.

Abertis, controlled by builder ACS (ACS.MC: Quote, Profile, Research) and savings bank La Caixa, has been expanding its reach in highways, having bought France's Sanef in 2005.

While a deal to merge with Italian rival Atlantia (ATL.MI: Quote, Profile, Research) fell through last year due to political opposition, Abertis reiterated its aim for a pan-European project in which many expect Portugal's Brisa (BRI.LS: Quote, Profile, Research) to play a major role.

Abertis last year upped its stake in Brisa to 14.6 percent, fanning speculation it wanted eventual control of its rival. The Spanish firm repeated its intention to proceed amicably, with a medium-term view of integrating Brisa into its project.

"A minority participation can only make sense, in the longer term, if we leave open the expectations of advancing closer collaboration and, if necessary, integration," Chief Executive Salvador Alemany told shareholders.