Australia : Bilfinger Berger considers up to $1.5bn IPO of Australian assets.

Byline: shiv03

GERMAN construction giant Bilfinger Berger AG (BBAG) is considering floating its Australian assets, including Abigroup and Baulderstone, in an initial public offering thought to be worth up to $1.5 billion.

BBAG, the parent company of Bilfinger Berger Australia (BBA), confirmed plans to reduce its exposure to building and civil construction and said it was considering an IPO of BBA s assets, which also includes Bilfinger Berger Services.

An IPO would also see Abigroup return to the Australian Securities Exchange after it delisted in 2004.

Abigroup had turnover of $1.9 billion in fiscal 2008 while Baulderstone had turnover of A$1.7 billion, the company said.

The Nick Greiner-chaired BBA has forecast overall turnover of about $4.7bn this financial year.

BBAG said it was yet to appoint corporate advisers and any final decisions on the deal were unlikely for a number of months.

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End of sidebar. Return to start of sidebar.Sources said the IPO could raise up to $1.5bn.

BBA chief executive officer Peter Brecht said an IPO would maximise the value of the Australian business for BBAG and would better position the Australian business for growth.

A potential IPO of the Australian business would facilitate better access to capital markets for the Australian business, while at the same time freeing capital for Bilfinger Berger AG to pursue growth opportunities in the services segment, he said.

The future ownership structure of the local business is an important decision at this stage of the company s evolution.

If committed to, the IPO would be the biggest Australian non-private equity listing since the onset of the global financial crisis and follow Myer s recent $2.2bn float and Kathmandu s coming listing next week.

Investa Property Group also plans to raise up to $1 billion through an IPO.

"It's a good time to list, particularly with all the government stimulus spending on infrastructure," said Heath Andrews, an Austock analyst in Melbourne.

Peter Chilton, an analyst at Constellation Capital Management in Sydney, said there would be plenty of market appetite for a potential offering of Bilfinger's Australian arm, provided the metrics stood up.

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