Dutch contractor Royal Bam Group is to sell 50% of Bam PPP, its public-private partnership arm, to Dutch pension company PGGM Infrastructure Fund.
The deal will raise €125m of shareholders’ equity, including a revaluation of Bam’s retained equity interests in completed projects. The company aims to use this money to accelerate growth in existing European and new global markets.
The deal brings the two companies together again after a 2011 joint venture formed Bam PPP PGGM Infrastructure Coöperatie.
Kieron Meade, Bam PPP’s managing director, said: "Creating an exclusive investor and delivery partner joint venture was a significant innovation for the PPP sector in 2011.
Since then, the BAM PPP PGGM full-service capability and proven commitment to long-term investment for the whole life cycle of a concession has proved extremely attractive to European clients. We believe this new collaboration will now help us unlock major opportunities in the new wave of PPPs emerging in selected global markets."
Ruud Joosten, Bam Group’s chief executive, added: "Bam PPP will continue to work closely with its BAM sister companies to offer our clients with the best whole-life solutions. The expertise and global networks of both organisations will also support the development of new investment opportunities."
Bam recently announced plans to layoff staff to save an estimated €100m a year after the Covid-19 pandemic lowered revenues.
BAM PPP will continue to provide services to its existing clients.
Image courtesy of Bam
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