Royal BAM Group nv confirms negotiations with AM nv about the acquisition by Royal BAM Group, together with a financial party, of AM Wonen and AM Grondbedrijf (Residential and Land Development).
The Management Board of AM NV reports progress in talks which may lead to a public bid to acquire the company and divide its activities. The bid price would be a maximum of 10.15 per share.
If the transaction proceeds, Koninklijke BAM Groep N.V., in conjunction with a financial partner, will ultimately own AM Wonen BV and AM Grondbedrijf BV (together forming the housing and land development division) and the holding company AM NV. It is intended that this division should continue to operate as an independent business in the years ahead. It is expected that AM Development BV, the commercial property development division, will be acquired by another financial party. No further details of the offers can be released at this stage.
The Supervisory Board and Management Board of AM have granted exclusivity to the parties concerned.
Strategic orientation
AM's Management Board stated at the time of publication of the 2004 figures on 17 March that the company had embarked on a strategic review to optimise both its financial structure and the funding required for its future growth. The company takes the view that financial restructuring is needed to enable it to grasp the opportunities presented by growth markets and meet its growing capital requirement. It also stated that little value was added by the company's listing and that there was relatively little synergy between AM's core activities.
The company also confirmed in July that exploratory talks were being held with parties potentially interested in taking over AM's activities. Indicative offers at the time valued the company at 9.50 per share.
Source: AM N.V./Royal BAM Group
