LONDON (Alliance News) - John Wood Group PLC on Monday said it is progressing with its non-core asset disposal programme and has agreed the sale of its Terra Nova Technologies unit.
Terra Nova, a conveying and material handling systems solutions business, was sold to Cementation Americas, a part of Murray & Roberts Holdings Ltd, for USD38 million in cash.
The FTSE 250-listed energy services company noted that the sale remains subject to several conditions, with closing expected in the second quarter of 2019.
"Wood's strategy going forward is to focus on asset light solutions rather than the manufacture and fabrication of equipment," said John Wood Chief Financial Officer David Kemp.
"The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan," added Kemp.
At the end of January, John Wood made four disposals as part of its non-core asset disposal programme.
The company sold its 25% stake in UK roadways concession RMS A13 Holdings Ltd, 52% of Chinese factory Power Machinery Ltd, and a share in two gas power plants in Italy. The combined proceeds of these sales were about USD28 million.
In mid-August last year, John Wood also sold its 50% stake in the Voreas Srl wind farm joint venture in Italy for USD26 million.
John Wood shares were trading 5.5% lower on Monday morning at 515.40 pence each.
Wood Group (J) (WG.)