Bilfinger Berger further reduces Nigerian investment
By Helen Wright14 June 2012
German contractor Bilfinger Berger has outlined plans to sell 90% of its investment in its Nigerian business Julius Berger International (JBI) to Julius Berger Nigeria (JBN) - an affiliated business - by the end of 2012.
JBI consists of the engineering and services activities of Bilfinger Berger Nigeria. The strategy will initially see 60% of JBI acquired by JBN, with a further 30% bought by the end of the year.
JBN itself is 39.9% owned by Bilfinger Berger, and the deal to consolidate JBI within the company is part of Bilfinger's wider strategy of edging out of Nigeria by ultimately selling its stake in JBN.
This strategy began in February, when Bilfinger Berger sold 10% of its stake in JBN to local engineering and construction company Nestoil for € 20 billion (US$ 26 million). Bilfinger Berger says it plans gradually to reduce its ownership of JBN further.
Bilfinger Berger said it planned to limit its involvement in Nigeria exclusively to financial investments. "At the same time, the group's move also follows recent initiatives on the part of the Nigerian government aimed at an increase of local content in the national economy," the company said.