Bilfinger Berger to buy MCE

By Chris Sleight06 October 2009

Herbert Bodner, chairman of the board at Bilfinger Berger

Herbert Bodner, chairman of the board at Bilfinger Berger

Bilfinger Berger has announced plans to acquire MCE, a design, construction and maintenance company focussed on the process and energy sectors. The deal is valued at € 350 million and will be funded by a share issue.

MCE is based in Linz, Austria and employed 6500 people last year. It had sales of € 900 million and achieved earnings before interest and tax (EBIT) of € 45 million.

Bilfinger Berger says MCE is complementary to its Industrial Services and Power Services divisions. It is a full-service provider to the energy and process sectors, with activities focussed on Austria and Germany.

Executive Board chairman Herbert Bodner said, "MCE is an excellent addition to our existing services units. We are expanding our range of services and our client base. The acquisition further strengthens Bilfinger Berger's leading position as a provider of industrial power services."

Rights issue

In order to fund the acquisition, Bilfinger Berger's Board plans to use authorisation granted to it during May's AGM to issue new shares. The shares will be offered to existing shareholders at a four-to-one ratio, which is to say shareholders will be able to buy one new share for every four currently owned.

Bilfinger Berger plans to issue 8,8 million new shares at € 30,60 each, raising € 270 million in fresh capital. The € 30,60 subscription price represents almost a 35% discount on Bilfinger Berger's closing share price of € 46,99 the day before the deal was announced.

The subscription period is due to run from 7 to 20 October, and the deal is also subject to approval by the European Commission.

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