Skanska acquires controlling interest in IPS, the largest Czech construction company
Skanska has acquired 56.3% of the shares in IPS Praha a.s. The shares acquired were previously owned by Stredoevropska stavebni a.s. This transaction was completed yesterday evening through settlement at the Czech Securities Centre.
In a separate transaction, Skanska is acquiring 9.72% of IPS’ shares from investment funds administered by Prvni investicni spolecnost a.s. Skanska’ total shareholding in IPS will subsequently reach 66.1%. Skanska is paying a total consideration of CZK 2.45 billion (USD 64.3 mln) for 66.1% of IPS’ shares.
Press Release
June 29, 2000 Skanska acquires controlling interest in IPS, the largest Czech construction company Skanska has acquired 56.3% of the shares in IPS Praha a.s. The shares acquired were previously owned by Stredoevropska stavebni a.s. This transaction was completed yesterday evening through settlement at the Czech Securities Centre. In a separate transaction, Skanska is acquiring 9.72% of IPS’ shares from investment funds administered by Prvni investicni spolecnost a.s. Skanska’ total shareholding in IPS will subsequently reach 66.1%. Skanska is paying a total consideration of CZK 2.45 billion (USD 64.3 mln) for 66.1% of IPS’ shares. The acquisition of the controlling interest in IPS is part of Skanska’s expansion strategy in Central and Eastern Europe and follows a recent acquisition of a controlling interest in the largest Polish construction company Exbud. The Czech construction market is valued at CZK 225 billion (USD 5.9 billion) and is expected to grow by 3 percent per year, over the next three years. The prospects are enhanced by a likely future EU membership and continued general economic recovery in the Czech Republic. With net sales of CZK 18.2 billion in 1999, IPS’s share of the Czech market is about 8 percent. Commenting on the acquisition, Mr. Anders C. Karlsson, president of Skanska Europe, said: "IPS is well positioned in the Czech Republic and complements the Group’s strategy and current activities in Central and Eastern Europe very well. Equally important is that the company also is profitable and well managed. We are looking forward to supporting the IPS management in their further development of the company." "We have the same strategic focus on project development and construction services and I am convinced that IPS will benefit from being part of a global group such as Skanska," says Mr. Zdenek Burda, CEO of IPS, in a comment to the transaction. As the new majority shareholder Skanska intends to assume all obligations towards IPS’ minority shareholders in compliance with existing Czech regulations. It has signed an agreement to purchse any additional shares tendered by the existing minority shareholders under the mandatory buy-out opened on 10 May 2000 by Stredoevropska stavebni a.s. for the buy-out price of CZK 158 per share and will pay the tendering shareholders for their shares in full upon receiving a full list and details on these shareholders from Stredoevropska stavebni a.s. If Skanska is still required to do so after the closing of the existing tender, Skanska will announce another mandatory minority shareholder buy-out fully in compliance with the Czech regulations. (Note: exchange rate CZK/USD as of 28 June 2000 = 38.1) _______________________________________________ For further information please contact: Anders C. Karlsson, President, Skanska Europa AB, Tel + 46 40 144 243 Eero Makkonen, President, Skanska Oy, Tel +358 9 61 52 22 00 Esko Tulikoura, Senior Vice President, Skanska Oy, Tel +358 9 6152 22 02 Peter Wallin, Head of Investor Relations, Skanska AB, Tel + 46 8 753 88 86
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IPS Praha a.s. IPS, based in Prague, was founded in 1953 and was privatized in 1992. IPS’ services cover the entire construction chain. The company focuses on project development and construction of housing, commercial premises as well as roads and railways. In 1998, 37% of the Group’s sales were attributable to development and construction of commercial premises. Key figures, IPS Group 1999 (IAS)| CZK M | SEK M | |
| Net sales | 18,199 | 4,186 |
| Operating income | 876 | 201 |
| Profit after tax | 355 | 82 |
| Net debt | 1,020 | 235 |
| Shareholder’s Equity | 2,415 | 555 |
| Number of common shares | 13,870,385 | |
| Number of employees | 7,900 |