This article is from the Australian Property Journal archive
THE parent company of Abigroup and Baulderstone, Valemus Limited, has announced a $1.39 billion public float in the current volatile market.
Valemus is currently a wholly owned subsidiary of Bilfinger Berger AG, a Frankfurt Stock Exchange listed multi-service group.
The listing of Valemus, which is a Latin word derived from the verb ‘Valere’, which means to be strong and to be healthy, is part of Bilfinger Berger AG’s strategy to divest the company to focus on its services operations.
The IPO follows an unsuccessful campaign by Bilfinger Berger to sell the company privately. Lend Lease reportedly conducted due diligence over the business.
Chairman Nick Greiner said the IPO provides an attractive opportunity for investors to increase their exposure to large civil and non-residential building construction projects in Australia.
In the year to June 30 2009, Valemus was Australia’s largest second largest contractor.
“There are only a limited number of contractors that have the scale to deliver large infrastructure projects in Australia. Abigroup and Baulderstone are well positioned among this group,” he added.
Valemus has a growing forward order book with a record $5.7 billion of work in hand as at March 31 2010, and in addition is the preferred bidder for $1.9 billion of pending contracts.
Greiner said Valemus’ growth strategy includes increasing its exposure to engineering construction in Australia by expanding its geographic presence and sector exposure, as well as growing its services business.
Valemus’ strong financial performance is expected to continue with pro forma EBIT of $178 million forecast in CY2010, representing an increase of approximately 9.5% on CY2009. On completion of the Offer, Valemus will have a strong balance sheet with net assets of $788 million.
Valemus is offering 555 million fully paid ordinary shares at an indicative price range of $2.20 – $2.50, to raise between $1.22 billion – $1.39 million.
Australian Property Journal
