Bunnik, The Netherlands, 29 May 2007 – BAM PPP – the operating company of Royal BAM Group, which specialises in the investment and operation of public-private partnership projects – has signed a Memorandum of Understanding with the investor DIF (Dutch Infrastructure Fund) to form a joint venture to separately hold the equity in part of its investment portfolio. BAM PPP will initially hold a majority share in the new company, but the intention of both parties is to have equal shares by the end of 2009.
Royal BAM Group has publicly indicated its intention to implement a long term divestment strategy to realise some of the underlying value in its portfolio of PPP projects, and to recycle funds to support the active and growing bidding programme of BAM PPP. The joint venture with DIF marks the commencement of this divestment programme and represents an excellent opportunity to collaborate with an active player in the secondary investment market.
It is anticipated that the proposed joint venture will acquire four operational UK projects from BAM PPP with PPP receivables of over EUR 250 million. The book value of the equity invested in these projects amounts to approximately EUR 30 million. The agreed upon value of the equity for the joint venture will be fixed after a due diligence on behalf of DIF. It is intended that the formation of the joint venture, due diligence and transfer of the investments, will be completed in the second half of 2007.
- Press: A.C. Pronk, +31 (0)30 659 86 21;
- Analysts: P. Juge, +31 (0)30 659 86 01.