Proceeds from the sale of Razel S.A., France; net profit 2008 to exceed previous forecast

October 20, 2008

October 20, 2008

Proceeds from the sale of Razel S.A., France; net profit 2008 to exceed previous forecast

Bilfinger Berger, on October 20, 2008, has sold all of the shares in Razel S.A., its wholly-owned French civil engineering subsidiary, to Fayat S.A., France. The transaction remains subject to approval from the relevant antitrust authority.

The sale will generate proceeds of €137 million, resulting in a book gain for Bilfinger Berger of €90 million. The Company also intends to establish a risk provision to reflect the general volatility in the construction business. Overall, Bilfinger Berger expects net profit for 2008 to increase beyond the previously forecast €140 million to about €185 million.

Razel had been a part of the Bilfinger Berger Group since 1995. The company is active exclusively in France and francophone Africa and is specialized in earthworks as well as road and tunnel construction. In 2008, Razel will generate an output volume of approximately €500 million with 4,600 employees.

In view of the general conditions on the French market and the corresponding limited development opportunities available to Bilfinger Berger, the Group has decided to sell the company. Joint projects from Bilfinger Berger and Razel will be continued.

Fayat is the fourth largest provider of construction services in France. The acquisition of Razel allows it to further expand its market position.

 

 

Downloads