18th Aug 2014 07:01
LONDON (Alliance News) - Carillion PLC, which is at loggerheads with Balfour Beatty PLC over their possible merger, on Monday said its cost-base savings outlined last week has not been audited in the technical sense, but rather an independent accounting firm provided public assurance that the cost-base of the combined group could be reduced by at least GBP175 million a year by the end of 2016.
Monday's statement follows a remark by Carillion Chairman Philip Green' in the Sunday Times. Green said: "Our synergy numbers have been audited, and at GBP1.5 billion it is virtually the same as the current market value of either company."
The construction company also clarified that its previous statement, which stated that the cost savings it identified "would represent a capitalised value of over GBP1.5 billion before any re-rating," has not been audited or reported on by an independent accounting firm.
Carillion, which has had two proposals rejected by Balfour Beatty, has until Thursday to make a final offer.
In a separate announcement Monday, FTSE 250-listed Carillion said it has signed a GBP90 million contract with HUB Residential to deliver a residential development project in London's Royal Docks.
HUB Residential is a London mid-market residential specialist.
The Hoola London project involves the design and construction of one 24-storey tower and one 23-storey tower, providing 360 residential apartments and one commercial unit.
Carillion said it will have particularly strong environmental features including "blue roofs", which have been developed to manage surface-water run-off and storage and energy-sharing agreements to provide district heating.
Work will commence on site immediately and is scheduled for completion by the autumn of 2016.
Carillion said it plans to create 40 new apprenticeships through the scheme.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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