Bilfinger Berger postpones Australian IPO
By Chris Sleight06 July 2010
Bilfinger Berger has announced it will postpone the initial public offering (IPO) of shares in its Australian subsidiary, Valemus, due to weak capital markets.
The German contractor had hoped to raise as much as AU$ 1,39 billion (€ 932 million) in gross proceeds from the spin-off of the company. A prospectus published in June put the offer price between AU$ 2,20 and AU$ 2,50 (€ 1,47 and € 1,68) per share, with the final price due to be announced on 8 July. However, the company said this range was not now achievable.
Bilfinger Berger Executive Board chairman Herbert Bodner said, "Bilfinger Berger's asking price for the Australian business cannot realistically be achieved in light of the current adverse conditions on the stock exchange. We are not under pressure to sell and have always emphasised that we would not part with our successful Australian business at an undervalued price."
A company statement added that the postponement of the IPO did not change Bilfinger Berger's fundamental aim to sell its Australian subsidiary and reduce its exposure to the construction sector.