Completion of offshore private sector BPO sale
Update on completion of offshore private sector BPO operations sale
31 December 2015
Serco Group plc ('Serco' or 'the Group'), the international service company, announced on 16 September 2015 that it had agreed the sale of its offshore private sector Business Process Outsourcing ('BPO') operations (the 'Offshore BPO Operations'). The transaction was expected to complete around the end of 2015, subject to customary closing conditions and regulatory approvals. Completion was anticipated to occur in three parts: one covering the majority of the Offshore BPO Operations, and two smaller but separate transactions related to some operations in the Middle East. The overall sale had an agreed gross value of approximately £250m before transaction costs and deferred consideration fair value adjustments together totalling approximately £15m, and before other relevant movements in closing balances.
Serco is pleased to confirm that completion has now occurred, effective 31 December 2015, for the majority of the Offshore BPO Operations. Reflecting movements in net asset balances since the agreed valuation date, and subject to any final adjustments up to today's completion date and for currency translation, the resulting reduction in Serco's net debt is expected to be approximately £200m. The remaining net cash consideration of approximately £10m is due to be received by Serco upon the completion of the Middle East transactions.
Serco's trading update issued on 7 December 2015 included assumptions that the sale of the Offshore BPO Operations would complete as described above. There is therefore no change to the expected trading outcome for the 2015 financial year or the outlook for 2016 as described in that recent trading update.
Ends
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226
About Serco
Serco is a leading provider of public services. Our customers are governments or others operating in the public sector. We gain scale, expertise and diversification by operating internationally across five sectors and four geographies: Defence, Justice & Immigration, Transport, Health and Citizen Services, delivered in UK & Europe, North America, Asia Pacific and the Middle East.
More information can be found at www.serco.com
Forward looking statements
This announcement contains statements which are, or may be deemed to be, "forward looking statements" which are prospective in nature. All statements other than statements of historical fact are forward looking statements. Generally, words such as "expect", "anticipate", "may", "should", "will" and similar expressions identify forward looking statements. By their nature, these forward looking statements are subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Factors which may cause future outcomes to differ from those foreseen in forward looking statements include, but are not limited to: general economic conditions and business conditions in Serco's markets; contracts awarded to Serco; customers' acceptance of Serco's products and services; operational problems; the actions of competitors, trading partners, creditors, rating agencies and others; the success or otherwise of partnering; changes in laws and governmental regulations; regulatory or legal actions, including the types of enforcement action pursued and the nature of remedies sought or imposed; the receipt of relevant third party and/or regulatory approvals; exchange rate fluctuations; the development and use of new technology; changes in public expectations and other changes to business conditions; wars and acts of terrorism; and cyber-attacks. These forward looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, Serco expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained in this announcement to reflect any change in Serco's expectations or any change in events, conditions or circumstances on which any such statement is based.
This information is provided by RNS
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