Ackermans & van Haaren: DEME in Line with Expectations

Ackermans & van Haaren today announced its interim statement on 2013 third quarter results.

The activities of DEME (AvH 50%) developed in line with expectations during 3Q13 due to the high activity level and good fleet occupancy.

At the end of September 2013, the order book was worth 2,615 million euros (compared to 2,954 million euros at the end of June 2013 and 3,317 million euros at year-end 2012).

In July, DEME announced that numerous specialized contracts for large-scale energy-related projects were awarded to several companies of the DEME group, for a total worth of 250 million euros. In August, the dredging works were started up in Santa Marta (Colombia) for a turning basin and mooring facilities as part of the construction of new loading installations for coal for the Drummond project.

In Venezuela, Tideway will construct a pipeline landfall this year for Cardon IV and for the state oil company PDVSA. Projects were also won in Australia, Ireland and India. In the meantime, the large-scale dredging and earthworks for the expansion of the new seaport in Doha, Qatar (New Port Project), and the dredging works for the new LNG port in Wheatstone, Australia, are continuing.

At the same time, GeoSea and Tideway are engaged in the construction of several wind farms in Belgium, the United Kingdom and Germany.

In September, AvH and Vinci reached an agreement on a new industrial project for Compagnie d’Entreprises CFE, which would enable CFE to acquire full control over DEME.

The extraordinary general meeting of CFE on November 13 unanimously gave its approval to contribute the 50% shareholding of AvH in DEME to CFE as part of a capital increase, in consideration for 12,222,222 newly issued CFE shares at a price of 45 euros per share. The appointment of AvH’s representatives on the board of directors of CFE was approved as well. Simultaneously, Vinci will sell half of its stake in CFE, i.e. 23.42% (before capital increase), to AvH at the same price of 45 euros per share.

As a result of both these transactions, CFE will become the sole shareholder of DEME, while AvH will acquire a shareholding of 60.39% in CFE, and Vinci will maintain a stake of 12.1% in CFE. These transactions are still subject to the approval of the European Commission. After completion of both transactions, AvH will, as a result of having crossed the 30% threshold in the voting stock of CFE, launch a mandatory public offer on all CFE shares held by the public.

The public bid will be launched at the same price as the issue price of the capital increase of CFE, i.e. 45 euros per share. Subject to the aforementioned condition, the capital increase and the sale of Vinci’s stake in CFE are expected to be completed in the fourth quarter of 2013 or the first quarter of 2014, and the public offer will be launched immediately thereafter.

A.A. Van Laere

Although the turnover of Van Laere (AvH 100%) picked up in the third quarter compared to the first six months, market conditions remain difficult. The car park activities (Alfa Park) being started up are still characterized by low occupancy rates.

Rent-A-Port

Rent-A-Port (AvH 45%) reached an agreement in 3Q13 with the Nigerian industrial group Dangote on the sale of part of its OK Free Trade Zone development project in Nigeria. This led to a modest gain in the results and gives Rent-A-Port the opportunity to initiate concrete logistical cooperation with the Dangote group.

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Press Release, November 15, 2013