Budimex has a conditional agreement to sell Budimex Nieruchomości for PLN 1.5 billion
Budimex has entered into a conditional agreement to sell all shares in its subsidiary - Budimex Nieruchomości to CP Developer S.àr.l., a company established by entities related to Cornerstone Partners sp.z o.o. with headquarters in Warsaw and Crestyl Real Estate s.r.o., a company governed by Czech law. The total sale price of the shares was set at PLN 1,513 million and will be reduced by the value of the dividend for 2020, which will be paid to Budimex by the company.
The agreement for the transfer of ownership of shares (disposition agreement) will be concluded after the buyer obtains the consent of the President of the Office of Competition and Consumer Protection for the concentration by way of acquisition of shares (condition precedent). This condition, in accordance with the provisions of the agreement, should be met within 6 months from the date of conclusion of the contract.
The decision to sell the shares was preceded by a strategic options review process started in July 2020. In the opinion of the management board, the negotiated price for the company corresponds to the fair value and is the highest offer obtained as part of the conducted research of interest of potential investors in the acquisition of Budimex Nieruchomości shares.
At the time and subject to the conclusion of the disposition agreement, Budimex will recognize profit before tax in the separate financial statements in the amount of approximately PLN 755 million, while in the consolidated financial statements it will recognize profit before tax in the amount of approximately PLN 690 million. The above values are estimates and have been calculated on the basis of the balance sheet data as at December 31, 2020 and may change after the final settlement of the transaction effect in the accounting books and the final settlement of the costs related to the transaction, reserved.
At the same time, Budimex and the company plan to start negotiations on establishing the rules for the provision of construction services by Budimex to the company in the event that a disposing agreement would be concluded.
Budimex, as part of the process of recognizing market interest in the acquisition of shares in the subsidiary Budimex Nieruchomości, on December 30, decided to grant exclusivity to a selected group of investors jointly submitting an offer. The exclusivity was granted until February 15, 2021, and then extended until February 26.
Budimex has been listed on the Warsaw Stock Exchange since 1995. Its strategic investor is the Spanish company Ferrovial. In 2019, it had PLN 7.57 billion of consolidated revenues.
Source: ISBnews and Budimex Nieruchomości