Spanish construction giant, Dragados has announced its intention to launch a cash offer for all the shares of Dutch construction and dredging company HBG. Dragados intends to ‘thereafter proceed to the integration of both companies, in order to create a leading European construction and service group.’
At a cash price of US$19.3 per share, the deal values HBG, a parent group of UK contractor Nuttall, at around US$681M. The HBG board has considered this offer and believes it to be a true representation of the value of the company and will recommend to shareholders that they accept the offer. This month, the Offer Memorandum containing all the terms and conditions of the deal will be published. Conclusion of the take-over is expected by the end of next month.
The buy-out, if approved, will see the single company working under the name Grupo Dragados standing with the third largest construction turnover in Europe. A new management board made up equally by representatives of Dragados and HBG will run the company.
The board of HBG has informed clients that the move will have no effect on it’s on-going projects.
