Vienna, Austria – Shares in Austrian construction company Strabag SE experienced a significant decline on Thursday, , following the sale of a substantial block of shares by its major shareholder, Raiffeisen-Holding NÖ-Wien. The move, which saw approximately 2.08 million shares placed on the market, triggered a 5.8% drop in Strabag’s stock price, marking its steepest single-day fall since .
The shares were sold at a price of €86.50 each, representing an 11.2% discount to the stock’s closing price on , according to analysis from Erste Group. Raiffeisen-Holding NÖ-Wien justified the sale as part of a routine portfolio and risk management strategy, and emphasized a desire to increase the stock’s free float, making it more attractive to a wider range of investors.
“The Strabag share has performed very well in recent months, and we have decided to sell a small portion of our stake as part of our ongoing portfolio and risk management considerations. A higher free float makes it more attractive to investors,” a spokesperson for Raiffeisen Holding stated.
The sale comes after a period of strong performance for Strabag, with the stock having risen by 84.82% over the past 52 weeks. Despite Thursday’s decline, which saw the price fall to around €90, the company remains well-positioned within the European construction sector. The transaction is expected to increase the free float of Strabag shares to approximately 18%.
Importantly, the existing syndicate structure – comprising Raiffeisen Holding, Uniqa, and the Privatstiftung Haselsteiner – remains unchanged. Raiffeisen clarified that the shares sold were not part of the syndicate’s holdings, but rather represented a portion of its independent stake. This detail is crucial, as the syndicate collectively holds a significant 30.4% stake in Strabag, as of , according to company data.
The move by Raiffeisen-Holding NÖ-Wien follows a broader trend of shareholder activity involving Strabag. In , Strabag announced planned capital measures aimed at reducing the stake held by MKAO Rasperia Trading Limited, a move linked to sanctions against the entity. These earlier actions underscore the ongoing evolution of Strabag’s shareholder base and the company’s efforts to navigate a complex geopolitical landscape.
The current sale of shares, valued at approximately €180 million, is separate from the earlier plans to reduce Rasperia’s stake. Raiffeisen’s decision to place the shares on the market through a non-syndicated offering suggests a desire for a swift and targeted divestment, minimizing disruption to the broader market. The discounted price, however, has raised concerns among some investors regarding the underlying valuation of the company.
The impact of this sale extends beyond Strabag’s immediate stock performance. The construction sector, already sensitive to macroeconomic conditions and fluctuating material costs, is closely watching the developments. A significant sale by a major shareholder can often signal a shift in sentiment, prompting broader market reassessment. While Raiffeisen has presented the move as a routine portfolio adjustment, investors will be closely monitoring for any further large-scale transactions that could indicate a more substantial change in ownership structure.
the situation highlights the increasing scrutiny faced by Austrian banks with exposure to Russia. In , a Russian court ordered shareholders of Strabag, including Austria’s Raiffeisen Bank International, to pay damages exceeding €2 billion ($2.1 billion) to Rasperia. This legal challenge, stemming from disputes related to business operations in Russia, adds another layer of complexity to the investment landscape surrounding Strabag and its major shareholders.
Looking ahead, investors will be focused on how Strabag’s share price stabilizes in the coming sessions. The company’s financial performance, coupled with broader economic trends, will be key determinants of its future trajectory. The market’s reaction to Raiffeisen’s divestment serves as a reminder of the sensitivity to major shareholder movements and the importance of maintaining investor confidence in a volatile global environment.
