Heijmans to slim down, issue shares and pay off debts

Heijmans has announced a restructuring plan that will see it focus on just the Netherlands plus the Belgian infrastructure market. The move came as the company announced a € 34 million net loss for 2008, as revenues fell -3% to € 3,63 billion.

Commenting on the restructuring plan, executive chairman Rob Van Gelder said, "Heijmans will be transformed into a Dutch building company with a strong position as a developer and builder in the Residential Building sector, with a high-quality niche position in the non-residential building and technical services sector, and with a leading position in the infrastructure sector in the Netherlands and Belgium."

The company expects to cut some 650 jobs as part of the restructuring plan. It will also be putting its businesses in the UK and Germany up for sale, as well as its non-infrastructure businesses in Belgium.

The company has also outlined plans to strengthen its capital base. This will involve selling-off parts of its land bank, which will be used to pay-down debt. It also plans to raise € 100 million through a rights issue. This will before shareholders for approval at the AGM on 27 May.