Press Release - PORR AG

ALLGEMEINE BAUGESELLSCHAFT – A. PORR AKTIENGESELLSCHAFT
Strategic cooperation with international investor opens up new markets for the
PORR Group
Subtitle: Increase in capital to enhance sustainable, qualitative growth of the
PORR Group
Vienna (OTS) The Executive Board of Allgemeine Baugesellschaft - A. Porr
Aktiengesellschaft, with the approval of the Supervisory Board, concluded a deal for a
strategic cooperation with the Turkish RENAISSANCE Group on Tuesday. This new
cooperation will allow PORR to expand in new markets, in particular the Middle East,
countries along the Caspian Sea and in North Africa. An increase in the share capital of
PORR AG was agreed at the same time. From 2009, up to 661,250 new no-par value bearer
shares, namely ordinary shares with voting rights and rights to participate in profit, will be
issued as part of a capital increase against cash contributions, whereby existing
shareholders have subscription rights. The capital increase will be carried out as a non-public
offer exclusively available to existing shareholders. Should existing shareholders choose not
to exercise their right to participate in the capital increase, the capital will be made available
to strategic investors in the form of a private offering. In the instance that existing
shareholders choose not to exercise their right to participate in the capital increase, around
10% of voting rights are likely to be acquired by the RENAISSANCE Group.****
A beaming PORR C.E.O. Wolfgang Hesoun remarked: “This partnership with the
RENAISSANCE Group, along with the increase in equity, has opened up promising new
markets for PORR – in North Africa, the Middle East and in markets along the Caspian Sea.
Through our new partner we have secured low market entry costs in addition to the benefits
of the local knowledge and good reputation of Erman Ilicak, C.E.O. and majority owner of the
RENAISSANCE Group, which will ensure the partnership ongoing demand in the
infrastructure sector – the core competency of the PORR Group – in the new target markets.”
RENAISSANCE C.E.O. Erman Ilicak added: “What PORR is contributing to this joint venture
is exceptional expertise in the infrastructure sector, while the RENAISSANCE Group already
has an established presence in many countries which will act as a platform for long-term,
sustainable growth. This cooperation marks a bright new future for both sides. We are
looking forward to working with PORR.”
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ALLGEMEINE BAUGESELLSCHAFT – A. PORR AKTIENGESELLSCHAFT
Increase in equity
The amount raised by the capital increase will be used to strengthen the equity base
and to improve the financing structure of the PORR Group. Extending the equity base will
enhance the group’s position among both national and international competitors. It will also
serve to finance expansion into new markets which will be developed in cooperation with the
new partner, the RENAISSANCE Group. “A broader equity base and the better financing
structure which comes with this means that the PORR Group’s position on the markets is not
only more secure in times of crisis, but it also enables us to carry out selective and
sustainable expansion”, Hesoun concludes. (End)
About the RENAISSANCE Group
The RENAISSANCE Group is Turkey’s second largest construction company in terms of
revenue and is among the industry’s top 70 worldwide. The company enjoys an excellent
worldwide reputation and the owner, Erman Ilicak, is one of the most successful
entrepreneurs in Turkey. The group has sites in Turkey, Libya, Saudi Arabia, Bahrain,
Turkmenistan, Russia and the Ukraine and is expanding to countries in the former Soviet
Union, the Middle East and North Africa. The RENAISSANCE group deals predominantly in
building construction and real estate development and has forecast gross revenues for 2009
of over EUR 1 billion with average staffing levels of around 12,000.
Press Contacts:
Mag. Peter Walder
PORR AG
0043 (0)50 626 1003
peter.walder@porr.at
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