Budimex finalises the sale of Elektromontaż-Poznań
Budimex S.A. has concluded two share sales agreements. Under the first, Budimex S.A. sold its 99% shareholding in Elektromontaż-Poznań for PLN 65 million. Under the second, Budimex S.A. sold its 99% shareholding in Biuro Inwestycji "Grunwald" S.A. for PLN 43 million. At the moment of the sales, Elektromontaż-Poznań S.A. conducted an activity involving the provision of electrical and installation services for non-residential construction, while Biuro Inwestycji "Grunwald" S.A. possessed cash resources coming from the transaction of sales of the organised part of the enterprise to Budimex Nieruchomości Sp. z o.o.
In 1999, Budimex S.A. took part in the commercialisation of Elektromontaż-Poznań S.A., taking up a 25% package of shares in the company's share capital. In 2013, Budimex S.A. took control of the company by increasing its share up to 51% of the share capital. Finally, by the end of 2017, Budimex S.A. held 99% of the shares in the share capital of Elektromontaż-Poznań S.A.
In 2017, at the request of Budimex, the process of division of Elektromontaż-Poznań commenced. The process aimed to separate the real property part of the business. In February 2018, the real property management segment was formally transferred to Budimex Inwestycje "Grunwald" S.A. (which in 2018 changed its name to Biuro Inwestycji "Grunwald" S.A.) as part of the formal division process by separation. In August 2018, the real property management segment was taken over by Budimex Nieruchomości Sp. z o.o. under an agreement for the purchase of the organised part of the enterprise.
The sale of both companies results from the implementation of the Budimex S.A. strategy to focus on the leading business of the group. Due to the concluded agreements, Budimex S.A. will recognise, in its unit financial statements, profit before tax of approx. PLN 66 million, while in its consolidated financial statements it will present profit before tax of approx. PLN 44 million. The above values may change after the final settlement of costs related to the conducted transactions. In the first half of 2018, Elektromontaż-Poznań S.A. generated revenue on sales of PLN 70.8 million and gross profit before tax of PLN 2.5 million. Upon the sale of Elektromontaż-Poznań S.A., Budimex S.A. ceases to consolidate the results of that company.