Royal BAM Group nv shares
Stock exchange listing
The shares of BAM have been listed on the Euronext Amsterdam stock exchange since 1959. BAM is listed on the AMX index (Midkap) as well as on the Euronext NEXT-150 Index. Royal BAM Group ordinary share options have been traded by Liffe, the Euronext derivatives exchange, since 2006.
The market capitalisation of the Group was €1.2 billion at year-end 2016 (year-end 2015: €1.4 billion).
The 2016 closing price of the ordinary share was €4.39, which was 14 per cent lower compared to the closing price at year-end 2015 (€5.13). The change in the AMX index was -2 per cent in 2016. BAM’s share price rose by about 35 per cent over the last five years. By way of comparison, the AEX and the AMX index rose by 55 per cent and 47 per cent in the same period.
> Graph 64 shows the history of the BAM ordinary share price over the past five years.
Volume of trade on Euronext Amsterdam
In 2016, the number of ordinary shares traded were 441 million (2015: 798 million).
The average daily trade was 1,717,000 ordinary shares (2015: 3,117,000). The value of ordinary shares traded in 2016 was €1,804 million (2015: €3,152 million). In 2016 the average daily trade in BAM shares was €7.0 million (2015: €12.3 million).
> Graph 65 shows the development of the average number of ordinary shares traded in 2016 on Euronext Amsterdam.
> Graph 66 shows the development of the average value of traded ordinary shares on Euronext Amsterdam in 2016.
If necessary, ING and Rabobank act as liquidity providers for the trade in ordinary shares.
Movements in the number of outstanding shares
In 2016, the number of outstanding ordinary shares increased by 227,601, due to the issue of shares for stock dividend and the repurchase of shares for the long-term incentive plan. The movement in the number of outstanding shares in 2016 is shown in > table 67. The average number of ordinary shares in 2016 was 270,503,004 (2015: 270,956,691).
According to the AFM register of substantial shareholdings, four institutional investors have real interests of 3 per cent or more.
Changes may have occurred, however, within the disclosure thresholds.
> Table 69 shows the interests of 3 per cent or more according to the AFM register of substantial shareholdings.
Dividend policy and proposed dividend for 2016
BAM has a dividend policy to distribute a dividend between 30 and 50 per cent of the net result for the year. When deciding upon the dividend, the company takes into account the balance sheet structure supporting the strategic agenda ‘Building the present, creating the future’ and the interest of the shareholders.
In accordance with the company’s dividend policy the proposal is to distribute a dividend of of 9 euro cents per ordinary share for 2016 (2015: 2 cents). This equates to a pay-out ratio of 50 per cent (2015: also 50 per cent) in line with BAM’s policy to pay out 30 to 50 per cent of the net result for the year. Subject to approval by the Annual General Meeting on 19 April 2017, this will be paid in cash with a scrip alternative on 17 May 2017.
Subordinated unsecured convertible bonds
In June 2016, BAM placed €125 million subordinated unsecured convertible bonds to repay the existing subordinated loan of the same amount. The transaction was in line with BAM’s financing strategy to strengthen its balance sheet by lengthening the maturity and broadening the sources of its funding. It also improved BAM’s commercial position and supports the execution of its strategy ‘Building the present, creating the future’.
The bonds have an annual coupon of 3.5 per cent, an initial conversion premium of 32.5 per cent and are convertible into ordinary shares of BAM with a nominal value of €0.10 each. The Bonds were issued at 100 per cent of their principal amount and, unless previously redeemed, converted or purchased and cancelled, the bonds will be redeemed at their principal amount on or around 13 June 2021. Upon exercise of their conversion rights, holders will receive shares at the then prevailing conversion price. BAM will have the option to call all but not some of the outstanding bonds at their principal amount plus accrued but unpaid interest from 28 June 2019, if the value of the shares underlying a bond exceeds €130.000 for a specified period of time. The bonds are trading on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.
More details of the subordinated unsecured convertible bond are published on the website.
BAM attaches great importance to the provision of transparent and identical information to all investors. BAM’s investor relations policy is geared to informing investors about the Group’s strategy, objectives, performance and prospects in good time, fully and in clear and unambiguous terms. Business results will not be adequately reflected in the value of the shares unless there is high-quality communication with investors.
BAM publishes the Group’s results every quarter. The annual and half year results are presented at analyst meetings. The trading updates for the first quarter and the nine months are presented during conference calls. These events are held in English and can be followed live or on demand via BAM’s website.
The company organises road shows and participates at investor conferences during the year to meet investors. All data and venues are published on the website.
For questions or more information concerning BAM, please visit the company’s website at www.bam.com. Shareholders (or potential shareholders) and financial analysts can address any questions to the Investor Relations Manager of Royal BAM Group, Joost van Galen, e-mail email@example.com, telephone +31 (0)30 659 87 07.