PFI Equity Disposal
20 December 2013
Costain Group PLC announces that, as part of the continuing disposal of its PFI equity portfolio, on 19th December 2013, it entered into an agreement to sell its minority shareholdings in three joint venture companies to Severn Trent Plc, for an aggregate cash consideration of £12.0 million. The transfers were completed on the same date. Upon completion, Severn Trent became the 100% owner of the three companies which provide services in the water sector. As a result of the sale, the Group will realise a profit of £9.1 million in 2013, which is in addition to the Board’s previous expectations for the full year. The Group will use the funds for investment and working capital purposes.
1. The three companies are:
- Severn Trent Costain Holdings Limited
- Severn Trent Costain Services Limited
Other water services:
- Severn Trent Costain Limited
2. The gross asset value as at 30 June 2013 of the companies transferred was £1.1 million (31 December 2012 £1.8 million) after the IAS39 mark-to-market swap adjustment and £2.2 million (31 December 2012 £2.8 million) excluding this adjustment.
3. The loss after tax attributable to the companies transferred for the six months to 30 June 2013 was £0.2 million (for the 12 months to 31 December 2012, profit after tax of £0.6 million).