ISSUES 25% IN NEW SHARES
Veidekke ensures further growth:
ISSUES 25% IN NEW SHARES
Veidekke's Board proposed on February 23 to issue 25% of new shares, with priority given to existing shareholders. At an extraordinary shareholders meeting on March 15, a proposal will also be put forth to split the shares in two, and change the voting rules to one vote per share.
The purpose of the floatation is to secure the financial foundation necessary for further growth. Information will be sent to existing shareholders who will have 14 days from March 31, 2000 to buy shares.
In 2000 Veidekke is expecting revenues of over NOK 8 billion, aiming for a further 50% growth over the next three years to a total revenue of NOK 12 billion in year 2003. The company estimates a yearly increase in earnings per share of 15% over the coming years.
The last four years
Over the last four years, Veidekke has positioned itself for the future within growth areas with high wealth creation. This has led to greater involvement in the value chain, and has strengthened the companys strategic basis for growth.
During this period, Veidekke has purchased 24 companies, and total investments are valued at NOK 1,300 million. The most important investments and acquisitions have been: Bautas, HF-gruppen, H. Gaarder, Wilhelmsen & Sønner, Dokken, BA Gjenvinning and Stavdal (2000), all within the Industry Division. Additionally there are Seby, Moderne Bygg, Block Berge Bygg, Norske Stålbygg, Valdresbygg, Bøhler (2000) and UNI Bygg (2000) within the Building Division.
Advanced standings
Veidekke has set the industry standards for profitability. The company has advanced their standings in all business areas. Through being a leader in restructuring the business with nine acquisitions last year, Veidekke has demonstrated profitable growth and strengthened the company both in breadth and depth.
Veidekke will concentrate more on Scandinavia
Veidekke will build up a strong market position within building and construction in Scandinavia. The establishment in Western Sweden will be expanded first in the direction of Øresund and the Stockholm area.
At the same time, the market position for the Industry Division will be strengthened and developed. The purchase of Stavdal puts Veidekke as the number two in the Nordic rental market, and the company is also considering opportunities for growth within other areas of the Industry Division.
National strategy
Domestically, Veidekke will continue to focus on selected areas of growth. Some of the most central areas will be residences, leisure centers, health care centers, commerce, infrastructure, environment and maintenance.