AMEC completes divestment of Project Investments business
12 November 2007
London, United Kingdom (12 November 2007) - AMEC, the international engineering and project management company, today announces that the sale of its Project Investments business ('Project Investments'), the management team and eight PFI assets to Land Securities Trillium ("LST") has been completed for a cash consideration of £152.4 million, before transaction costs.
As announced on 12 July 2007, the sale of Project Investments' assets was subject to receiving consents from public authorities and co-shareholders and lenders in the projects. Sale to LST of the remaining asset, comprising AMEC's shares in two PPP road projects in the UK, has been pre-empted by co-shareholders and is being sold to them for an aggregate consideration of £11.1 million. Completion is expected in December 2007.
The overall consideration of £163.5 million arising on the sale of Project Investments is in line with the board's expectations. Proceeds will be held on deposit.
As previously announced, the LST transaction does not include AMEC's investments in the Incheon Bridge Project in Korea and the AMEC Wind assets and business which will be retained by AMEC.
In the year ended 31 December 2006, Project Investments generated profit of £5.5 million before interest, tax and intangible amortisation and exceptional items. Gross assets at 31 December 2006 were £72 million.