3/16/2000 11:49 AM CET
Skanska has entered into a transaction to acquire 9.99 percent of the shares and votes in Exbud S.A., the leading contractor in Poland, for a total of PLN 63 million (US$ 15 million), corresponding to a purchase price of PLN 42 per share. The transaction was made in a block trade with Mr. Michal Solowow. Skanska intends to launch a public tender to acquire a controlling interest in the company.
March 16, 2000
Skanska acquires shares in the leading Polish contractor Exbud and intends to launch a public tender for a controlling interest in the company
Skanska has entered into a transaction to acquire 9.99 percent of the shares and votes in Exbud S.A., the leading contractor in Poland, for a total of PLN 63 million (US$ 15 million), corresponding to a purchase price of PLN 42 per share. The transaction was made in a block trade with Mr. Michal Solowow.
Skanska intends to launch a public tender to acquire a controlling interest in the company and has filed a submission with the Polish Securities and Exchange Commission and is filing with the Anti-Monopolies Office to seek approval for this. Once the necessary approvals have been received, the details of the public tender will be announced.
Exbud is Poland´s leading construction company. It was founded in 1977 and has its head quarters in Kielce. Exbud conducts a broad range of building construction and civil engineering services, primarily focused on the Polish market, where it has a large network of local branches. In 1999, Exbud had consolidated sales of PLN 2.4 billion (US$ 620 million) and consolidated earnings before tax of PLN 90 million (US$ 23 million). The company has some 14,000 employees. Exbud is listed on the Warsaw Stock Exchange with a market capitalization as at close on the 15th March, 2000 of PLN 591 million (US$ 145 million).
The intended acquisition of a controlling interest in Exbud is part of Skanska´s strategy to broaden the geographical market base in selected markets, including Central and Eastern Europe. In this context, Poland offers particular attraction, given the size of its growing economy and the potential for strong growth in the Polish construction market.
Skanska has been active in Poland for several years, primarily in project development, and in 1999 reinforced its presence in this market through the purchase of a controlling interest in Budexpol, a specialized construction company based in Wroclaw. In 1999, Skanska´s total net sales in Poland was around SEK 430 million (US$ 49 million).
Commenting on the share purchase and the intention to launch a public tender, Anders C. Karlsson, President of Skanska Europe, says: " We welcome this opportunity to increase our presence in Poland. The Polish construction market is currently similar to the Swedish market in size, but with 40 million people and a growing economy it offers very good growth potential, also considering the effects of a future EU membership.
Securing a strong market position is a core part of our strategy in the region and working with a business of the quality of Exbud will give us excellent prospects of achieving this. The positive response we have received from Exbud´s management to this strategic step is also very reassuring.
For further information, contact:
Eero Makkonen, Head of Region Skanska Central and Eastern Europe, +359 61 52 21
Mikael Holm, President of Skanska Central Europe AB, +46-705-14 44 21
Staffan Schéle, Head of Corporate Finance, Skanska AB, +46-8-753 8272
Peter Wallin, Head of Investor Relations, Skanska AB, +46-709- 53 88 66
The Skanska Group
Skanska is one of the world´s leading groups in construction services and project development. Founded in 1887, it is currently operating in some 50 countries, with the US, Sweden, Finland and Denmark as principal markets. In 1999, the Group had total net sales of over SEK 79 billion (US$ 9 billion; PLN 35 billion) and some 45, 000 employees. The Skanska B-share is listed on the OM Stockholm Stock Exchange and as at close on 15th March, 2000, Skanska´s market capitalization was around SEK 32 billion (US$ 3.7 billion; PLN 14 billion).