Disposal

RNS Number : 6406D

Carillion PLC

07 December 2009

 



7 December 2009

Carillion sells equity in two Public Private Partnership projects for £86.9 million and expects to move to net cash position by year end.

Carillion plc has sold a proportion of its equity investments in two Public Private Partnership projects, Allenby Connaught and the New Accommodation Project, Cheltenham, to Innisfree for a total cash consideration of £86.9 million.

At 31 December 2008, the combined value of the assets in Carillion's balance sheet that are the subject of the transaction was £76.7 million. The total combined pre-tax profit attributable to these assets was £7.5 million in 2008.

These disposals are in line with Carillion's policy of recycling equity in its investments in Public Private Partnership projects and the proceeds will be used to reduce the Group's net borrowing. Following the receipt of these proceeds the Group now expects to move to a net cash position by 31 December 2009.

The proportions of equity sold are as follows: 50 per cent of Carillion's 40 per cent interest in the New Accommodation, Cheltenham, project and 65 per cent of Carillion's 50 per cent interest in the Allenby Connaught project.

The sale proceeds reflect the net present value of the cash flows derived from the £2.6 billion of gross sales revenue that these equity investments would have generated for Carillion over the period of the concession contracts.

For further information contact:

Richard Adam, Group Finance Director                                          [phone]

John Denning, Director Group Corporate Affairs                               [phone]

Notes to editors

Carillion is the UK's leading support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities.  The Group has annual revenue of over £5 billion, employs around 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean. 

In the UK, Carillion's principal market sectors are Defence, Education, Health, Facilities Management & Services, Rail, Roads, Building, Civil Engineering and Utilities Services.

In the Middle East, Carillion's principal market sectors are Construction and Facilities Management. In Canada and the Caribbean, the Group's main sectors are Health, Roads Maintenance and Construction.

Carillion's portfolio of equity investments in Public Private Partnership projects includes projects in the UK and Canada, particularly in the Defence, Education, Health and Transport sectors.

This and other Carillion news releases can be found at www.carillionplc.com

 

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