The construction group Strabag is continuing with its plan to reduce the stake of its Russian core shareholder MKAO Rasperia Trading. To reduce the shareholding of the company controlled by sanctioned oligarch Oleg Deripaska from 27.8 percent to less than 25 percent, the first part of the necessary capital measures has now been registered in the commercial register, Austria’s largest construction company announced on Monday .
The share is diluted in several steps: The gist of the matter is that free reserves are distributed to existing shareholders, who now have the choice between a stock option and a cash option. According to Strabag, Deripaska does not own this choice because his participation has been frozen due to EU sanctions.
Deripaska on sanctions list
According to its own statements, Strabag wants to reduce the risks and disadvantages for its business activities. Deripaska, who has been involved with Strabag since 2007, was placed on the sanctions list and his assets frozen after the outbreak of war in Ukraine. He is considered a confidant of President Vladimir Putin. Strabag will therefore no longer distribute profits to the Russian shareholder.
Shareholders before the elections
The remaining shareholders can now decide whether they want to receive a distribution of 9.05 euros per Strabag share or new shares in a ratio of 1:4. Those who choose the cash option do not need to take any action at this time. The special payment is expected to take place at the end of the first quarter of 2024. Anyone who chooses the stock option will receive one new share for every four existing shares. According to Strabag, this option can be passed on to the depository bank from September 12 to September 29.
There is currently 11.7 percent in free float. In the event of a payment, this share would be reduced. “As the board of directors of Strabag, we would welcome it if our shareholders supported the planned measures and decided on the stock option. In any case, it is not the intention of these measures to reduce the free float,” said CEO Klemens Haselsteiner.
According to Strabag, the remaining core shareholders – a syndicate consisting of founder Hans Peter Haselsteiner’s private foundation, Raiffeisen Niederösterreich-Wien and the insurance group Uniqa – have already agreed to elect the stock option. The Austrian shareholders together have a stake of approximately 57.8 percent in the construction group.
Source: Krone
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