By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigerian construction giant, Julius Berger Nigeria Plc (JBERGER) said on Thursday Bilfinger, the German based international engineering and services group would divest its 33.4 percent stake in the company.
According to JBERGER, Bilfinger has informed the board of the company of its decision to dispose of its remaining stake in JBN to long term Nigerian investors on or before the end of June 2015, Julius Berger said in an issuer’s announcement with the Nigerian Stock Exchange (NSE).
The Nigerian construction giant affirmed that the proposed transaction will lead to the exit of the representative of Bilfinger SE from the Julius Berger board.
JBERGER disclosed that Bilfinger’s decision to divest its stake from the construction company is based on the company’s strategic realignment from a construction firm to engineering and services group in the last decade which saw Bilfinger SE divest totally from its construction activities.
“The board of Julius Berger Nigeria Plc and the executive management strongly believes that the exit of Bilfinger SE will not impact on JBN in view of the strategic business directions being undertaken by the board and management of the company which would sustain and increase JBN’s efficiency and responsiveness as well as set basis for a future of long lasting success,” Julius Berger added.
Though, Bilfinger said on its official website that it’s selling its remaining 30.3 percent stake in Julius Berger Nigeria plc, Abuja, to Nigerian investors.
The company says the sale of 13.8 percent of the shares is expected to take effect in the second quarter (Q2) of 2015, transfer of the remaining shares will follow in the third quarter of 2015.
“Also in the second quarter of 2015, Bilfinger will dispose of the remaining investment of 10 percent of Julius Berger International GmbH, Wiesbaden, a subsidiary Julius Berger Nigeria. In total, Bilfinger expects net proceeds from these transactions in the amount of approximately €100 million which will flow to the company in roughly equal parts in the second and third quarters of 2015,” the company said.
It further affirmed that at the end of Q2, a gain in the magnitude of €60 million in total will be realized from the already sold shares as well as from the revaluation of the shares that will be transferred in the third quarter (Q3).
This is coming on the heels of the executive board of Bilfinger SE saying it would henceforth focus on business with clients in the industrial and real estate sectors. “A structured selling process will be initiated for the Power business segment which should be completed within one year,” the company added.
“With the focus on the Industrial as well as the Building and Facility business segments, we are strengthening our positioning as a leading international engineering and services group”, says Per H. Utnegaard, chief executive officer at Bilfinger. “At the same time, we are confident that we will be able to find a new owner with experience in the project business that can take advantage of the future potential of the segment, primarily outside of Germany.”
