Veidekke targets markets outside Norway:
"On 30 August H. Hoffmann & Sønner received an offer from Veidekke to buy the shares of the company. Unanimously, the Board of Directors and the management consider the offer to be good, full of perspective, and recommend that the shares be sold to Veidekke," says Mr. Ole T. Krogsgaard, Chairman of the Board of H. Hoffmann & Sønner. He especially emphasises the fact that the employees' representatives on the Board wholeheartedly support the proposal.
By merging with Veidekke, HHS will be further strengthened. The Hoffmann- name will be preserved, and the company will continue as an independent company, but will be aided by increased competitive strength. Together, the two companies will realise their common vision to develop further their operations both geographically and as regards competencies, thus ensuring growth both in their home markets and within the Scandinavian market. The merger will also improve our chances to meet the increasing competition and demands of the market on a modern construction company," says Mr. Jørgen Uno Rasmussen, Managing Director of H. Hoffmann & Sønner.
After the merger, Veidekke and HHS will be the fourth largest construction company in the Nordic countries, and as such prove a strong Scandinavian challenge to the two major Swedish construction companies.
HHS expects a turnover this year of almost DKK 2 billion. The company has more than 1,100 employees, and is one of the major construction companies in Denmark. The company is listed on the Copenhagen Stock Exchange.
"In Veidekke, we have for many years aimed to be a large construction company with all the Nordic countries as our home market. In H. Hoffmann & Sønner we have found a partner that fits well with this strategy. Through the merger we will get the better of two worlds. Neither party looses nationally. On the contrary, we will give each other new skills and new opportunities. Our home markets can be retained and expanded while we enjoy the possibility of capitalising on opportunities of the markets across the borders with the advantages of a large-scale business" claims Mr. Terje R. Venold, Veidekke's President & CEO.
With its 5,000 employees and an estimated turnover this year of NOK 8 billion, Veidekke is the largest Norwegian construction company. In Sweden, Veidekke has a building- and construction company in Gothenburg, Vecon. Today, Veidekke publishes its acquisition of the Swedish real estate company Selmer Bostäder in Stockholm from Skanska. See separate press release.
HHS expects a turnover this year of almost DKK 2 billion. The company has more than 1,100 employees, and is one of the major construction companies in Denmark. The company is listed on the Copenhagen Stock Exchange.
For the employees of HHS, the cross-national merger with Veidekke means a further safeguarding of the Danish work-places and growth of the company. The company will get more resources and the employees will have new and exciting career opportunities.
After the merger, Mr. Jørgen Huno Rasmussen, Managing Director of H. Hoffmann & Sønner will be a member of Veidekke's corporate management. Also, Chairman of the Board of H. Hoffmann & Sønner, Mr. Ole T. Krogsgaard, will be nominated to a place on the Veidekke Board. President & CEO of Veidekke, Mr. Terje R. Venold will be the new Chairman of the HHS Board of Directors.
Veidekkes offer, which is valid for four weeks as of today, comprises the acquisition of the shares of HHS against a cash settlement. The price offered is DKK 750 per A-share and DKK 500 per B-share. The offer is equivalent to the value of the total share capital of H. Hoffmann & Sønner of DKK 394 million. Compared with the price on the Stock Exchange on Wednesday 30 August, the B-shareholders receive a premium of 117% and a realisation of the company's value.