German construction contractor Bilfinger Berger yesterday announced plans to divest Bilfinger Berger Australia (BBA) in an initial public offer.
The move will see BBA listed as a standalone entry on the Australian Securities Exchange (ASX) in the first half of this year.
The Australian subsidiary’s operations also include Abigroup, Baulderstone and Bilfinger Berger Services.
Bilfinger Berger Services provides engineering, asset management and maintenance services across many industries, including mining.
According to BBA, the German parent has decided to concentrate on its core property services business in Europe.
“The sale of Bilfinger Berger Australia is an important milestone in the planned reduction of the construction business,” the German company said in statement.
“The volume of which will be reduced in the medium term from about €6 billion (around A$9.4 billion) to around €2 billion (A$3.13 billion).”
BBA chief executive Peter Brecht said the company was excited about the potential for investors to share in future success.
“We have a diverse and balanced revenue mix based on our varied capabilities and the scale of work in hand across our three operating companies,” he said.
“We continue to secure new projects such as Peninsula Link in Victoria and Australia Pacific LNG in Queensland.
“We believe BBA is well positioned as infrastructure spending increases and the market improves.”
The value of the initial public offer is yet not known, however The Australian speculated that it could be worth up to $1.5 billion.
This would make it the largest non-private equity listing in Australia since the arrival of the global economic downturn.
The company will launch a prospectus in the coming months.