Ferrovial is negotiating acquiring a stake in Budimex, one of the major Polish construction firms


Ferrovial is negotiating acquiring a stake in Budimex, one of the major Polish construction firms

The Ferrovial Group is currently negotiating the acquisition of a stake in Budimex, one of the leading Polish construction firms listed on the Warsaw Stock Exchange.

Ferrovial aims to acquire a significant -but not majority- holding in the Polish construction firm Budimex. To this end, it is currently involved in talks with the management of the company and its major shareholders, with a view to becoming a stable strategic partner.

Expansion in Central Europe

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.

To date, in Europe, Ferrovial has a stable presence in Portugal and Italy, where it is conducting infrastructure work and building and also manages the Scut motorway in the Algarve, a contract recently awarded in the south of Portugal. Moreover, it is working in another 10 countries in North America, Latin America and North Africa. Ferrovials foreign backlog amounted to over Ptas 160 billion in 1999.

Amongst 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. The shareholders owning more than 5% of the company are Kredyt Bank PBI, one of the major commercial banks in Poland, The Baupost Group and Templeton Direct Advisors Inc.


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