Budimex finalized the sale of Elektromontaż-Poznań

Budimex S.A. has concluded two share sale agreements. Under the first agreement, Budimex S.A. sold its 99% stake in Elektromontaż-Poznań for PLN 65 million. Under the second agreement, Budimex S.A. sold its 99% stake in Biuro Inwestycji “Grunwald” S.A. for PLN 43 million.

At the time of the sale, Elektromontaż-Poznań S.A. was engaged in the provision of electrical installation services for non-residential construction, while Biuro Inwestycji “Grunwald” S.A. had funds from the sale of an organised part of the enterprise to Budimex Nieruchomości sp. z o.o.

In 1999. Budimex S.A. took part in the commercialisation of Elektromontaż-Poznań S.A. by taking up a 25% stake in the company’s share capital. In 2013, Budimex S.A. took control of the company, increasing its involvement to 51% of shares in the share capital. Finally, at the end of  2017. Budimex S.A. held 99% of shares in the share capital of Elektromontaż-Poznań S.A.

In 2017. at the request of Budimex, the process of dividing Elektromontaż-Poznań was initiated, which aimed to separate the real estate part of the business. In February 2018. the property management segment was formally transferred to Budimex Inwestycje “Grunwald” S.A. (which in 2018 changed its name to Biuro Inwestycji “Grunwald” S.A.) as part of the formal spin-off process. In August 2018. The property management segment was acquired by Budimex Nieruchomości sp. z o.o. under an agreement for the purchase of an organized part of the enterprise.

The sale of both companies is a consequence of the implementation of Budimex S.A.’s strategy of focusing on the group’s leading business.

As a result of the concluded agreements, Budimex S.A. will recognise in the separate financial statements a profit before tax of approximately PLN 66 million, while in the consolidated financial statements it will show a profit before tax of approximately PLN 44 million. The above values may change after the final settlement of the costs related to the transactions.

In the first half of 2018. Elektromontaż-Poznań S.A. generated sales revenues of PLN 70.8 million and gross profit before tax of PLN 2.5 million. Upon the sale of Elektromontaż-Poznań S.A., Budimex S.A. ceases to consolidate the company’s results.