HBG: write-down of German property development portfolio
Rijswijk, the Netherlands – The German construction company Wayss & Freytag AG – in which HBG, Hollandsche Beton Groep nv, has an interest of more than 95 per cent – wrote down its property development portfolio by an additional DEM 150 million in 1998.
This concerns the portfolio that was built up prior to the takeover of Wayss & Freytag by HBG on 1 January 1997. HBG will charge this amount to shareholders’ equity as goodwill.
HBG acquired the greater part of its interest in Wayss & Freytag from AGIV Aktiengesellschaft für Industrie und Verkehrswesen, based in Frankfurt am Main. In view of the nature and extent of the information provided at the time, HBG has decided to hold AGIV liable.
HBG is also preparing an offer for the remaining shares, representing almost five per cent of the capital of Wayss & Freytag, that are currently held by third parties. Acquisition of this interest is expected to involve a sum of DEM 24 million.
HBG will announce the result for 1998 – that, in accordance with earlier forecasts, will be at least on a par with the 1997 figure – on 19 March 1999.
Arno C. Pronk, HBG Public Relations, telephone +31 70 3722121.