HBG, Hollandsche Beton Groep nv, is to acquire the one-third interest of Ballast Nedam nv in the jointly owned dredging company Ballast Ham Dredging following Ballast Nedamâ€™s intention to exercise its put option. HBG already owns two-thirds of the shares of BHD. The transaction price amounts to â‚¬ 210 million, payable in three months which HBG will fund from its own resources and credit lines.
HBG welcomes the opportunity to acquire full ownership of the dredging activities. Dredging, due to its high entry barriers, is likely to show large and stable margins in the future. This transaction will significantly enhance the overall profitability of HBG and improve its cash flow and EPS.
It is expected that HBG will be taken over by Royal BAM NBM next October following the NMa approval, once the European competition authority has referred the file to the Netherlands partially. Royal BAM NBM reached an agreement on this acquisition, which at present is only subject to the mentioned approval, with the Spanish construction group Grupo Dragados SA, the present owner of HBG.
(source: Ballast Nedam and HBG)