Core Investor Sells 33% Stake In Julius Berger | Independent Newspapers Limited
Newsletter subscribe


Core Investor Sells 33% Stake In Julius Berger

Posted: Jun 19, 2015 at 1:59 am   /   by   /   comments (0)

By Joe Nwankwo, Abuja and Bamidele Ogunwusi, Lagos


Julius Berger Nigeria Plc (JBN) on Thursday notified The Nigerian Stock Exchange that Bilfinger SE, its minority shareholder with a holding of 33.4 percent, has informed the Board of the Company of its decision to dispose of its remaining stake in the company to long term Nigerian investors on or before the end of June 2015.

JBN states that this proposed transaction will lead to the exit of the  representative of Bilfinger SE from the Board of JBN. The Company added that the decision is based on Bilfinger’s strategic realignment from a construction company to an engineering and services group in the last decade which saw Bilfinger SE divest totally from its construction activities.

The Board of Julius Berger Nigeria Plc and the management strongly believes that the exit of Bilfinger SE will not impact on JBN in view of the strategic business directions being undertaken by the Board and management of the company which would sustain and increase JBN’s efficiency and responsiveness as well as set basis for a future of long lasting success.

Meanwhile, the company at its 2014 annual general meeting in Abuja on Wednesday said that the company faced many difficult challenges in the year under review, noting the foremost challenges were direct fallout of the economic trends in Nigeria.

Chairman of the company, Marshall Nurudeen Imam,  said: “the economy was hit by various factors simultaneously, the unfortunate, but well managed influx of the Ebola virus, the falling crude oil price on international markets and the adjustment of the Naira are but a few.

Such serious adversely influenced the business climate, as well as financial budgets and subsequent funding nationwide, and result in an overall downward trend which picked up momentum by the third quarter of the year.

He added that the situation led to ongoing delay in payments by major clients, especially in the public sector and, therefore, there were negative cash flow issues, causing higher financial costs.