Last checked at 11 Dec 2019 07:00
Costain Group PLC("Costain" or "the Group")Disposal of Alcaidesa Holding, S.A.U
Costain, the smart infrastructure solutions company, is pleased to announce that Costain Alcaidesa Limited ("Costain Alcaidesa") yesterday agreed the sale of Alcaidesa Holding S.A.U to Millenium Hotels Real Estate I Socimi S.A., a real estate investment fund based in Spain, for total cash consideration of €15.2m (the "Disposal"). The Disposal, which is to be effected by way of share sale, is subject to the satisfaction of certain conditions to completion which are expected to be satisfied shortly. Completion of the Disposal is therefore expected to take place this week.
Alcaidesa Holding S.A.U and its wholly owned subsidiary, Alcaidesa Golf S.L.U, own and operate two golf courses, land and a club house in Cadiz, Spain.
In addition, Costain is also seeking a potential purchaser of its 624-berth Marina Concession.
The Disposal and the potential disposal of the Marina Concession is part of Costain's strategy to divest its non-core business assets in Spain.
The Disposal, combined with the potential sale of the Marina Concession, will result in an aggregate loss on disposal and fair value asset impairment of £8.9 million. This will be included within the Group's 2019 financial statements as a one-off non-cash charge.
Further details of the Disposal are set out in the Notes below.
Enquiries:
Costain
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Alex Vaughan, Chief Executive Officer |
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Tony Bickerstaff, Chief Financial Officer Carolyn Rich, Investor Relations Director Sara Lipscombe, Group Communications Director
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MHP Communications Tim Rowntree, Peter Hewer, Ollie Hoare | Tel: 020 3128 8771 |
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Notes
1. Prior to the Disposal, the Group has reorganised the assets held by its non-core business in Spain by way of an intra-group reorganisation (the "Reorganisation"). Under the Reorganisation, Costain Alcaidesa acquired the entire issued share capital of Alcaidesa Servicios, S.A. from Alcaidesa Holding, S.A.U. Alcaidesa Servicios S.A. operates a marina in Southern Andalusia, close to the Gibraltar border.
2. As at 31 December 2018, the Group's carrying value of the gross assets of Alcaidesa Holding S.A.U and Alcaidesa Golf S.L.U amounted to €23.2 million (€20.8 million) and the businesses recorded a loss before tax of €0.6 million (£0.5million) for the 12 months to 31 December 2018.
3. Costain will use the proceeds of the Disposal for general working capital purposes.
4. The loss on the Disposal is £4.0 million and the fair value asset impairment of the Marina Concession is £4.9 million (based on the estimated potential sale value of £5.9 million).