Bilfinger Jumps on Concessions Disposal Effort: Frankfurt MoverAlex Webb
Bilfinger SE jumped the most in six months after Germany’s second-biggest builder began the sale of its concessions business, an infrastructure partner to the public sector.
Bilfinger climbed as much as 3.9 percent, the steepest intraday increase since November, to 80.85 euros and was trading 3.6 percent higher at 10:38 a.m. in Frankfurt. That pushed the stock up 10 percent this year, valuing the Mannheim-based company at 3.7 billion euros ($4.8 billion). Volume was 98 percent of the three-month daily average.
“Business opportunities with other units of the company, construction areas in particular, have declined significantly,” Bilfinger said in an e-mailed statement after the market closed yesterday.
Chief Executive Officer Roland Koch plans to turn Bilfinger into a service provider, shifting away from its construction past. The former prime minister of the German state of Hesse has 850 million euros available for acquisitions to help realize the plan, which is intended to bring the company about 400 million euros in net income in 2016.
The concessions unit, which delivers and operates transport and social infrastructure projects as a private partner to the public sector, had 143 employees at the end of 2012 and generated 41 million euros in earnings before interest, taxes and amortization that year, a 78 percent increase from 2011. The number of the division’s projects in the period fell to 14 from 30.