Bilfinger Berger sells stakes in concession projects for €72 million

October 07, 2010

October 7, 2010

Bilfinger Berger sells stakes in concession projects for €72 million: Selling price clearly demonstrates intrinsic value of the portfolio

Bilfinger Berger has sold equity interests in four of its 29 privately-financed concession projects: HSBC Infrastructure Company Limited (or one of its subsidiaries) purchases half of the shares currently held by Bilfinger Berger in the Edmonton Ring Road and the Kicking Horse Canyon in Canada, the Kent Schools project in England as well as indirectly 41.6 per cent in the M80 Motorway in Scotland. The selling price amounts to €72 million – above the net present value of the four projects as reported by Bilfinger Berger. The sale of the equity interests leads to an additional contribution to earnings in the Concessions business segment of about €18 million. The transaction is subject to the approval of the other stakeholders in the projects.

“This sale clearly demonstrates the intrinsic value of our concessions portfolio and gives us the flexibility to make new investments”, says Herbert Bodner, Chairman of the Executive Board at Bilfinger Berger. The volume of equity committed by the Group to its project portfolio decreases by €51 million to a current €357 million as a result of the sale to HSBC.

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