- Offers received in divestment process led to re-assessment of the business case
Provision of €85 million to cover full exposure
- No impact on income calculation for assessing 2019 dividend
- Balance sheet remains strong with leverage ratio to stay within strategic brackets
- Arcadis now closes out this legacy issue and exclusively focuses on growing its core business
Amsterdam, 17 December 2019 – Arcadis (EURONEXT: ARCAD), the leading global Design & Consultancy organization for natural and built assets, decided to stop investing in the ALEN associate and its participations in clean energy assets in Brazil. The re-assessment of the business case for the ALEN associate leads to a full provision of the exposure. The additional provision of €85 million, mainly for guarantees, will not impact the income calculation for assessing the 2019 dividend.
Peter Oosterveer, CEO of Arcadis, says: “We have given the ALEN associate ample time to create a return on the investments in clean energy assets. The divestment process initially provided clear indications of serious interest by third parties, however recent developments, including the unsatisfactory performance of the biggest asset, resulted in offers that led us to re-assess our exposure.
We have therefore decided to intervene now, and to stop further investments in the ALEN associate. This is obviously very disappointing, but we are no longer willing to negatively impact our financial performance and to expose Arcadis’ stakeholders to a situation with uncertain outcomes. Our local partners will continue with the operation and we will support them in their attempt to sell the assets in due course. Given the uncertainties, we do not expect the overall value to cover for the expected credit loss on guarantees.
Notwithstanding this disappointment, we are pleased with the improved performance in our core business. We have a strong balance sheet and can manage the impact. The decision we announce today will enable us to fully focus on the path of long-term value creation and I am convinced that our efforts will continue to further pay off to achieve the targets set for 2020.”
-End of press release-
De Midcap 905.81 -2.13 -0.23% Arcadis EUR 19,61 -59ct vol. 154.000