Kier completes sale of two PFI investments

RNS Number : 0490H

Kier Group PLC

23 May 2011

 



23 May 2011

Kier completes sale of two PFI investments for £9.2 million

Kier Group plc ("Kier") announces that on 20 May 2011 it completed the sale of its 50 per cent interests in two Private Finance Initiative ("PFI") projects, Oldham and Norwich Schools, to an HICL Infrastructure Company Limited and Kajima Partnerships Limited joint venture for an aggregate consideration of £9.2 million. The consideration was paid in cash in full on completion. The sales are in line with Kier's policy of selectively realising the value of the equity in its PFI portfolio. 

Kier constructed the schools and has also provided the schools with facilities management services for a number of years.  Following the disposals, Kier will continue to provide the facilities services under the current contracts for a further 21 years in the case of the Norwich schools, and 22 years in the case of the Oldham schools. 

The aggregate consideration gives rise to a profit of £4.3 million which will be disclosed in Kier's full year results for the year ending 30 June 2011 and represents a valuation discount rate on the base case cash flows of approximately 7 per cent.

Ends

Contacts:

Haydn Mursell                   

Group Finance Director

Kier Group                         01767 640111

Faeth Birch             

Conor McClafferty    

Finsbury                           020 7251 3801

 

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