Ballast Nedam has confirmed it is in discussions with several “foreign parties” on the possibility of a takeover or merger of the Dutch contractor.
The company’s share price has fallen over recent months, following the October announcement of a series of unexpected losses on major projects. This was followed in March with the withdrawal of its previous earnings forecast for 2014 and the pushing-back of publication of its full-year results. When figures were published, they showed a €103 million net loss for the year, compared to a €41 million net loss for 2013.
A statement from the company said, “At the end of April Ballast Nedam has presented a package of financial and strategic measures with a view to dealing with the heavy project losses of the Infrastructure division. The announcement of this package and the subsequent presentation of the Annual results over 2014 have created large fluctuations around the Ballast Nedam share.
Regarding the takeover talks it has entered, Ballast Nedam added, “One of the foreign parties involved has approached Ballast Nedam at the end of 2014 and with this party Ballast Nedam was discussing the possible scenario of a takeover of parts of the infrastructure portfolio at the end of April. The outcome of these discussions is uncertain.”