BAM sells 21.5% interest in Van Oord
Bunnik, The Netherlands, 22 December 2011 – Royal BAM Group has sold its 21.5% interest in dredging company Van Oord, with effect from today, to a consortium formed by the Belgian investment company Cobepa and the Dutch investment companies Janivo, Breedinvest and Rinkelberg. The purchase price is €200 million. As a consequence of guarantees in the sale agreement, BAM is taking a provision in the year ending 31 December 2011 to cover the maximum risk of €15 million. The provision relates to future dividends payable by Van Oord over the next five years. Net of this provision, the transaction has no material impact on BAM’s previously announced forecast that the Group will make a net profit of €120 million for the financial year 2011.
The total amount in cash to be received by BAM in the financial year 2011 in connection with the interest in Van Oord is €238 million. This amount comprises the purchase price of €200 million and two dividend payments received earlier in the year; an ordinary dividend of €16 million and a special dividend of €22 million.
The Executive Board of Royal BAM Group is very pleased with this transaction. BAM’s minority interest in the Van Oord dredging company originated from the sale of the dredging activities to MerweOord in 2003. As part of that sale, it was agreed that BAM could sell its minority interest in Van Oord from 2008 onwards. The transaction announced today is in line with the updated strategic agenda announced on 17 November, whereby BAM will increase its focus on core activities and also strengthen its financial position.
Further information:
- press: A.C. Pronk, +31 (0)30 659 86 21;
- analysts: P.R.E. Snippe, +31 (0)30 659 87 07