Bilfinger Berger is considering a $1.5 billion IPO of its Australian assets.
Despite forecasting a rise in earnings to about $4.7bn this financial year from about $3.4bn previous year, the parent company BBAG is corroborating the strategy to trim down its revelation to building and civil construction, and is taking into account IPO of BBA’s assets comprising Bilfinger Berger Services.
“A potential IPO of the Australian business would facilitate better access to capital markets for the Australian business, while at the same time freeing capital for Bilfinger Berger AG to pursue growth opportunities in the services segment’,’ said Peter Brecht, the chief executive of Bilfinger Berger Australia.
With the view to focus more on profitable activities, the company is planning to cut down about 2 billion Euros in the midterm output volume of its global construction business.
“The future ownership structure of the local business is an important decision at this stage of the company’s evolution”, said Peter Brecht.
Positioning the Australian business for growth, the company believes that the IPO could rise up to $1.5bn, meaning big fees for investment banks.