Koninklijke BAM Groep N.V.: BAM to divest its remaining 50% share in Invesis to joint venture partner PGGM

Bunnik, the Netherlands - Royal BAM Group nv and Dutch pension fund service provider PGGM have reached conditional agreement on the divestment of BAM's remaining 50% share in Invesis to PGGM Infrastructure Fund. After the transaction, which is expected to be closed early 2025, Invesis will be fully owned by PGGM Infrastructure Fund.

The public private partnerships (PPP) landscape in BAM's home markets has changed and the PPP portfolio requires long-term equity investments. BAM remains committed to contracted projects and the current bidding pipeline of Invesis as a construction and operations partner. The transaction strengthens BAM's cash position to support execution of the strategy Building a sustainable tomorrow.

BAM will receive a cash consideration of approximately €105 million in two tranches in 2025. In 2024, the transaction will result in a positive impact on adjusted EBITDA of approximately €40 million, including an additional earn-out of approximately €10 million, bringing the total earn-out to approximately €20 million for the year, and an impairment of approximately €105 million. The impairment principally reflects the impact of increased interest rates since 2020, which had caused significant non-cash hedge movements with a corresponding increase in Invesis' book value. The transaction will reduce solvency by circa 2%. In determining the dividend proposal for the year 2024 the negative effect on the net result of this transaction will be disregarded.

The closing of the transaction is subject to obtaining relevant authority clearance and completion of the works council consultation process.

Further information:

- analysts: Michel Aupers, [e-mail], [phone];
- press: Arno Pronk, [e-mail], or Bert Ooms, [e-mail], [phone].

This press release contains inside information within the meaning of article 7(1) of the EU Market Abuse Regulation.