Wessels back in the majority
By Sandy Guthrie05 October 2012
The Wessels family is once again increasing its shareholding in Dutch contracting group VolkerWessels, having reduced its interest back in 2007.
Reggeborgh, a private investment company of the Wessels family, has reached an agreement with private investor CVC Capital Partners over the expansion of its shareholding. The family's current interest will be increased by 17.5% to over 60%, which will give the Wessels family a controlling interest in the company.
In 2007, the Wessels family announced plans to cut its ownership from 90% to 42.5%. CVC Capital Partners took a 42.5% stake, and the portion of the company owned a number of its senior staff was set to rise from 10% to 15%.
Now, CVC will continue to hold approximately 25% of the shares, with the remaining 15% still held by around 150 of the company's managers.
The family has explained that its latest decision was motivated by its strong commitment to the company. It said the current economic climate required the management to take various measures that could further strengthen and expand the position of VolkerWessels.
The Wessels said that the next generation of the family had expressed its confidence in VolkerWessels. Dik Wessels will stay on as a member of the supervisory board.
CVC said it was pleased with these recent developments. It said, “We are delighted that the Wessels family have decided to strengthen their ties with VolkerWessels through this transaction. We are confident that VolkerWessels faces a bright future.”
The transaction is pending approval by the Netherlands Competition Authority (NMa).