Bilfinger close to finalising Australia IPO
Wednesday, 2 June 2010
SYDNEY/MELBOURNE, June 1 (Reuters): German construction group Bilfinger Berger is close to finalising plans for the $1.2 billion float of its Australian arm and could start marketing the issue within two weeks, sources familiar with the transaction said Tuesday.
A final decision was still in the hands of the vendors but could come within days and a prospectus was expected to be lodged in the next two weeks, one source said. The sources declined to be identified as they were not authorised to speak to the media.
Bilfinger's move comes despite recent market volatility and a slide in the Australian dollar.
Brokers involved in the float are valuing the business, recently rebranded as Valemus, between A$1.4 billion and A$1.75 billion ($1.12 billion-$1.5 billion), according to two fund managers who attended recent briefings.
Deutsche Bank, one of the joint lead managers, valued it at between 12.5 to 15.1 times earnings, but that was before the sharp falls in the market, a fund manager said, declining to be named as the information was not public.
A final decision was still in the hands of the vendors but could come within days and a prospectus was expected to be lodged in the next two weeks, one source said. The sources declined to be identified as they were not authorised to speak to the media.
Bilfinger's move comes despite recent market volatility and a slide in the Australian dollar.
Brokers involved in the float are valuing the business, recently rebranded as Valemus, between A$1.4 billion and A$1.75 billion ($1.12 billion-$1.5 billion), according to two fund managers who attended recent briefings.
Deutsche Bank, one of the joint lead managers, valued it at between 12.5 to 15.1 times earnings, but that was before the sharp falls in the market, a fund manager said, declining to be named as the information was not public.