Ferrovial acquires 36.68% of Budimex, one of the most important construction firms in Poland

Ferrovial acquires 36.68% of Budimex, one of the most important construction firms in Poland

As a result of the talks announced last week, the Ferrovial Group has acquired a 36.68% stake in the share capital of Budimex, one of the leading Polish construction firms. This holding represents 29.06% of the companys voting rights.

This operation falls within the Groups international expansion strategy. It will give Ferrovial the opportunity of developing and expanding in Central Europe, and more specifically in Poland, where the construction industry is going through a process of change with the boom in the sector and the good future prospects, as Poland is to receive cohesion funds to modernize infrastructure when it joins the European Union, foreseeably in the year 2003.

One of the leading Polish construction firms

The Budimex Group, which was founded in 1968 and privatized in 1992, has been listed on the Polish stock market since 1995. Budimex is one of the leading Polish construction firms, with turnover of Ptas 55.6 billion in 1999. In the year 2000 sales revenues are expected to exceed Ptas 80 billion, as a result of the growth of the company, the acquisition of a majority stake in Mostostal Krakow (which specializes in industrial construction, power stations and roads) and the global integration this year of Unibud, a company engaging in building work.

The Budimex Groups core business is the construction of all kinds of works (civil, building and industrial), which is complemented by a growing franchise in the real estate business. In the international arena, it works in Germany, countries from the former Soviet Union, the Czech Republic and Slovakia. Budimex is the leading Polish construction firm in terms of market cap., with a value on the Warsaw Stock Exchange of Ptas 32 billion.