100 per cent approval for PORR'S "PURE PLAYER" strategy

Vienna, 30 October 2014 - During PORR AG's extraordinary general assembly on the 29th of October, the board of directors introduced to the shareholders the planned spin-off of the real estate sector, the PIAG AG ("PORR Immobilien AG" - PORR real estate PLC). The impressive result: the assembly voted 100% in favour without a dissenting vote or abstention. Also a rea-son to celebrate was the shareholders' interest - 75% of the capital was represented on loca-tion, among which important institutional investors from the U.S. and the U.K.
 
PORR CEO Karl-Heinz Strauss: "After the approval by the supervisory board, our shareholders' unan-imous vote in favour of PORR's planned reorganisation is a clear mark of confidence for our strategy of intelligent growth. We are convinced that the future path with two pure players - PORR as a pure building company and PIAG/UBM as a real estate developer of European format - will greatly benefit both enterprises. With the unanimous vote backing us, we can immediately start taking all necessary steps."
 
"One and one become three"
Thanks to the opportunity to acquire majority shareholding in "UBM Realitätenentwicklung AG" (UBM real estate development PLC), PORR was given the chance to both concentrate PORR's activities on the building business and to merge all real estate activities - Strauss & Partner as well as not PORR's real estate not required for operations - into one unit and to unite them with UBM. "When CA-Immo offered their shares in UBM last summer, we have immediately seized the opportunity. It was clear for us that by taking over the company, we can create real added value for our shareholders - following the principle "one and one become three."
 
This means that the future will see two separate, listed enterprises - PORR AG (PORR PLC) with its entire activities focussing on the building section and PIAG AG (PIAG PLC) with the activities taken over from UBM as well as Strauss & Partner group. In the future, both enterprises will strive to further capitalise on their strengths with sharpened company profiles. PIAG AG will be the parent company of UBM as well as Strauss & Partner and will be merged with UBM in the first half of next year. After the separation, PORR AG will remain a leading building company in Europe with unaltered scope of activities and size.
 
"Together with PORR AG's real estate not required for operations and Strauss & Partner's real estate development activities as well as majority shareholding in UBM, we create a listed real estate devel-oper of European format that can exhibit an impressive track record," says Karl-Heinz Strauss. "Both PORR AG and PIAG AG will profit from this measure. PORR will improve its balance sheet and profit figures thanks to the omission of capital lock-up in development projects as well as not operationally necessary real estate and will reduce net debt to almost zero. In turn, PIAG will grow to a size re-quired for a sensible, independent presence on the capital market."
 
The spin-off of the real estate sector will be executed with existing ownership ratios maintained, which means that all existing shareholders of PORR AG will receive one PIAG share for every PORR share they hold.