Hochtief to take new approach to concessions sale
By Chris Sleight11 November 2010
Hochtief has reaffirmed plans to spin off its concessions unit. However, as well as planning a stock market floatation, the company says it will also sell to individual investors in trade deals. Hochtief also said it is prepared to give up a majority stake in the business.
Hochtief had originally planned to spin-off a minority stake in its concessions business last year, with an initial public offering (IPO) of 49% of the company expected to raise some € 1 billion. However, the IPO was abandoned in December 2009 due to unfavourable stock market conditions.
According to a statement from the company, the Hochtief Concessions portfolio is now worth more than € 1,6 billion and the parent company's board has decided to release value from the portfolio next year. It describes its new approach as a "twin-track procedure", with an IPO still being pursued along with sales of stakes or specific assets to individual investors.
The statement also added, "Hochtief is prepared to dispose of a majority share."