News & Analysis

Hochtief ponders concessions group IPO

The German construction group has said it is considering the transaction as a way to close the gap between the market value and actual value of the business which manages its airport and PPP project stakes. There is no timeframe for any potential transaction.

-

German construction group Hochtief has said it is considering an IPO of its concessions division.

As part of the close of the second quarter 2009, the company said it is currently checking strategic options for its Hochtief Concessions business, including capital market transactions. It said as part of this strategy, an IPO of its concessions division is being considered.

Hochtief added that it still sees its concessions business as integral the group as a whole and it intends to hold a majority  of shares should an IPO take place. It said there is no timeframe for any potential transaction.

Hochtief: mulling
concessions IPO

The group said Hochtief Concessions continued to perform well during the first half of 2009, despite Hochtief AirPort's combined passenger numbers falling by over five percent compared with the prior corresponding period. Hochtief's Tirana International Airport in Albania was its only airport to buck this trend, with passenger traffic growing 8.6 percent. During the first six months of the year Hochtief PPP Solutions achieved financial close on three PPP schemes, including the San Cristóbal tunnel in Chile, the Wigan community centre in England and the Moers town hall in Germany.

The Hochtief group as a whole saw order backlog rise to €33.11 billion over the first half of 2009, an all-time high. The group's profit before tax fell 11.3 percent from the prior corresponding period to €259.3 million, although without exchange rate changes the fall would only have been 3 percent.