Strabag grants Deripaska three-week extension

Strabag has extended the call option deadline under which Russian conglomerate Basic Element has the right to re-acquire a 25% stake in the Austrian contractor. The company, which is controlled by oligarch Oleg Deripaska now has until November 5 to finalise the various legal documents.

Basic Element gave up its shareholding in Strabag in May 2009 when the financial crisis took its toll on Mr Deripaska's other business interests, which include manufacturing, energy, financial services and aviation as well as construction through the ownership of RUR 100 billion (US$ 3.3 billion) per year Russian contractor Glavstroy.

The call option, held by Basic Element subsidiary Rasperia Trading, was due to expire on October 15. However, Strabag's controlling shareholders, the Haselsteiner family and banking group Raiffeisen have elected to extend this to, "Enable the parties to finalise the drafting and subsequently sign the necessary legal documents for the transaction."

Partial ownership by Basic Element is part of Strabag's strategy to secure a foothold in the large but untapped Russian construction market.