Re Joint Venture
Shanks Group PLC
08 December 2005
8 December 2005
Company announcement
Shanks Group plc joins forces with Babcock & Brown to Tender for
Greater Manchester Waste Disposal Authority PFI project
Shanks Group plc, a leading European waste management group, today announces
that it has entered into an agreement with Babcock & Brown, to present a joint
tender for the Greater Manchester Waste Disposal Authority (GMWDA) waste
management PFI project requiring an estimated £300m of capital investment.
The agreement will see the two companies create a joint venture partnership to
bid for the project, combining their complementary skills and experience. Shanks
is an established waste management company with proven expertise in the
provision of innovative high technology solutions for municipal domestic waste.
The Group has already been appointed to manage the high profile integrated waste
management PFI contracts for the East London Waste Authority (ELWA), Argyll &
Bute and Dumfries & Galloway.
At the landmark half million tonnes per annum PFI project for ELWA, Shanks is
constructing specialist mechanical biological treatment plants to process the
authority's household waste. This technology meets the needs of the changing UK
and European legislative and fiscal environment driven by the Landfill Directive
and Landfill Tax.
Babcock & Brown is a global investment and advisory firm with long-standing
capabilities in structured finance and the creation, syndication and management
of assets and cash flow-based investments. It was founded in 1977 and is listed
on the Australian Stock Exchange and has a market capitalisation of
approximately A$5.5 billion.
Babcock & Brown operates from 18 offices across Australia, the United States,
Europe, Asia and Africa and has in excess of 600 employees worldwide. It has
been an active participant in the UK PFI sector since 1997 having developed 15
UK PFI projects with a total gross development value in excess of £425m in areas
such as law and order, education and health.
Commenting on the partnership Michael Averill, Group Chief Executive of Shanks
said: 'We are delighted to have Babcock & Brown as our joint venture partners,
who have extensive experience within the PFI arena. We fully believe that the
unique strengths of each party will enhance our bid and will improve our ability
to provide GMWDA with the high quality facilities and services that they
expect.'
Notes to Editors:
Shanks Group Plc is one of the UK's largest waste management companies and, with
its operations in Belgium and The Netherlands, is also a leading player in the
European market. Employing over 3,000 people and based at 100 sites, the Group
offers a wide and innovative range of waste management solutions within its
various collection, transport, local authority, recovery, recycling, treatment
and disposal services.
Following a strategic review in 2003, Shanks has decided to focus its UK
operations on the emerging market for long term municipal waste contracts using
new technologies, and on the recycling of non-hazardous industrial and
commercial waste as Landfill Tax increases. In October 2005 Shanks sold the
major part of its UK hazardous waste operations. Shanks also sold its UK
landfill interests to Terra Firma in July 2004, allowing the Group to both
significantly reduce its debt and have the flexibility to pursue opportunities
in continental Europe as well as the UK integrated municipal waste contracts.
Babcock & Brown is a global investment and advisory firm with long-standing
capabilities in structured finance and the creation, syndication and management
of assets and cash flow-based investments. It was founded in 1977 and is listed
on the Australian Stock Exchange.
Babcock & Brown operates from 18 offices across Australia, the United States,
Europe, Asia and Africa and has in excess of 600 employees worldwide. It has
five operating divisions including real estate, infrastructure and project
finance, operating leasing, structured finance and corporate finance. The
company has established a funds management platform across the operating
divisions that has resulted in the establishment of a number of focused
investment vehicles in areas including real estate, renewable energy and
infrastructure.
Babcock & Brown has been an active participant in the UK PFI sector since 1997
having developed 15 UK PFI projects with a total gross development value in
excess of £425m in areas such as law and order, education and health. It is
currently at a preferred bidder stage on an additional three projects with a
total gross development value of in excess of £300m and is actively bidding
other PFI projects in the UK, Europe and Australia.
Ends
For further information contact:
Michael Averill, Group Chief Executive
Fraser Welham, Group Finance Director
Shanks Group plc
Telephone +44 (0)1628 524523
Or
Ginny Pulbrook
Citigate Dewe Rogerson
Telephone +44(0)20 7282 2945
This information is provided by RNS
The company news service from the London Stock Exchange
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