Royal BAM Group simplifies its capital structure

9 December 2004 10:09 - Royal BAM Group nv

Not for distribution in the USA, Canada or Japan

Bunnik, 9 December 2004 – Royal BAM Group has reached agreement with ING regarding the purchase of all non-convertible cumulative preference shares (CPSs) held by ING. Royal BAM Group will issue new ordinary shares to finance this buyback.

ING has granted Royal BAM Group an option to acquire the approximately 1.57 million CPSs held by ING at a price of €24.90 per CPS. These CPSs represent approximately 94% of the total number of non-convertible CPSs outstanding. The exercise period of this option is from 15 February 2005 up to and including 31 March 2005.

To finance this buyback, Royal BAM Group will issue for approximately €40 million new ordinary shares that will be placed with domestic and foreign institutional investors. It is expected that the issue price and number of new ordinary shares to be issued will be determined after the closing of the Euronext Amsterdam stock exchange on 9 December 2004. The share issue is being arranged by ING Investment Banking.

The main advantages of the buyback of the CPSs to Royal BAM Group are a simplification of the capital structure and more flexibility in the distribution of dividends.

Enquiries:

Press: Drs. A.C. Pronk, (030) 659 86 21; Analysts: P. Verbraeken, (030) 659 88 56.