VolkerWessels is set to complete a private buyout early next year with its largest shareholder, Dutch investment firm Reggeborgh, offering around £575m for the remaining public shares.
The move has been supported by the VolkerWessels management board and will see Reggeborgh, which currently has a 63.5% stake in the business, take the company off the Amsterdam Stock Exchange in a bid to prevent a further loss of value in an uncertain market.
The public offer for VolkerWessels is set at €22.20 per share, a premium of 25.4% over the closing price on 28 October 2019.
The transaction is expected to close in the first quarter of 2020.
Henry Holterman, CEO of Reggeborgh Group said: 'At the time of the IPO, Reggeborgh’s intention was to become a long-term minority shareholder in VolkerWessels over time.
'However, circumstances have changed to the extent that we are currently in a situation that it is no longer possible to achieve this objective. The European peer group of VolkerWessels has de-rated and share prices of Dutch construction companies suffer from additional pressure as a result of increased uncertainty related to environmental regulations.'
'As such, a further decrease of Reggeborgh’s shareholding has become unrealistic. Notwithstanding these circumstances, we have full confidence in the potential of VolkerWessels. We are of the opinion that making this offer is in the best interest of all stakeholders.'
In a joint statement with Reggeborgh, VolkerWessels said it 'considers the intended transaction to be a compelling offer for all the company’s stakeholders'.
'Reggeborgh fully supports the long-term strategy of VolkerWessels and moreover VolkerWessels will be in a better position to deal with the increasingly challenging market conditions with a long-term shareholder in a private setting. The company will have a strong direct shareholder willing and able to take a long-term view on maintaining and, where possible, enhancing its market position.'
In the VolkerWessels's half year results, released in August, it showed underlying earnings before interest, tax, depreciation and amortization (EBITDA) at €93m and a record order book at historic high of €9,352m up 6.7%.
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