Last checked at 15 Nov 2018 07:00
KIER GROUP PLC
Disposal of Kier share in KHSA Limited to Downer Group
Kier Group plc ("Kier"), a leading infrastructure services, buildings and developments & housing group, announces that it has agreed terms for the disposal of KHSA Limited ("KHSA") to Downer Group ("Downer") for a total consideration of up to AUS$43.7m (c.£24m), subject to an escrow arrangement. The consideration will be satisfied in cash on completion, which is expected to take place in early 2019.
KHSA, which was acquired as part of the Mouchel group of companies in 2015, provides road asset management and maintenance services in Australia in joint venture with Downer. For the financial year ended 30 June 2018, KHSA reported a profit before tax of £7.0m. The gross assets of the company were £52.1m at 30 June 2018.
The disposal is expected to result in a profit of c.£15m, subject to post-completion adjustments. The proceeds from the sale will be used to accelerate the reduction of Kier's net debt.
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For further information, please contact:
Louise Turner-Smith, Kier investor relations | +44 (0)7976 790 012 |
Kier press office | +44 (0)1767 355 903 |
Richard Mountain/Nick Hasell, FTI Consulting | +44 (0) 20 3727 1340 |
This announcement does not constitute an offer of securities by Kier Group plc (the "Company"). Nothing in this announcement is intended to be, or intended to be construed as, a profit forecast or a guide as to the performance, financial or otherwise, of the Company or any of its subsidiaries (together, the "Group") whether in the current or any future financial year. This announcement may include statements that are, or may be deemed to be, ''forward-looking statements''. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's or the Group's ability to control or predict. Forward-looking statements are not guarantees of future performance. You are advised to read the section headed ''Principal risks and uncertainties'' in the Company's Annual Report and Accounts for the year ended 30 June 2018 for a further discussion of the factors that could affect the Company's or the Group's future performance and the industry in which it operates. Other than in accordance with its legal or regulatory obligations, the Company does not accept any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.