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Ballast Nedam Sells Interest in Ballast Ham Dredging
01 Oct 2002
The Dutch construction group Ballast Nedam has reversed its earlier position and decided to sell its one-third interest in joint venture Ballast Ham Dredging to majority co-owner Hollandsche Beton Groep The decision resolves an enduring dispute concerning a 'change of control' clause in the shareholders agreement which created Ballast Ham Dredging.
The clause became relevant earlier this year when the Spanish construction firm Grupo Dragados acquired HBG, a move which Ballast Nedam considered a threat to Ballast Ham's position as an independent dredging contractor, entitling Ballast Nedam to exercise a call option requesting HBG transfer its two-thirds interest in the newly created joint venture.
Matters were further complicated when a 23% interest in Grupo Dragados was sold to yet another Spanish construction company, ACS. HBG refused the Ballast Nedam request, contending that Ballast Ham's position was not undermined by Grupo Dragados' ownership of HBG.
Another surprise move during the summer saw HBG sold back into Dutch ownership with construction firm Royal BAM NBM. This development eased Ballast Nedam's concerns for the future of Ballast Ham and it withdrew the call option.
Now Ballast Nedam has exercised its put option, selling its one-third share in Ballast Ham to HBG for ?210m, a sum which will solidify Ballast Nedam's finances after it lost ?105m in the first half of this year. Meanwhile, Dutch authorities are expected to approve the acquisition of HBG by Royal BAM NBM this month.
MJ Information No: 17500
