4th May 2021 09:06
(Alliance News) - Babcock International Group PLC is getting ready to sell off its rail business and parts of its aerial emergency services, as part of an effort to improve the defence and engineering group's financial position, the Financial Times reported Tuesday.
Babock's rail business provides track renewal and is part of a joint venture that is electrifying railways in the UK. It also refurbishes high-voltage power lines. Babock hopes to sell the rail and power activities together, the FT said, citing "two people familiar with the situation".
The newspaper said the people confirmed that Babock intends to divest some of its aerial emergency services outside the UK, and its training division also is earmarked for sale. The FT said Babock declined to comment.
https://www.ft.com/content/e3ccb525-cadd-4171-b7a8-246cfe7379f2
Last month, Babcock said it will pay no dividend for either financial 2021, which ended on March 31, or financial 2022, as it embarks on a thorough restructuring.
The company said it intends to "return Babcock to strength without the need for an equity issue". Instead, it expects to raise GBP400 million from disposals over the next 12 months. Additionally, its restructuring plan is expected to save GBP40 million per year from a one-off expense of GBP40 million.
Babcock shares were up 0.7% at 290.00 pence early Tuesday in London.
By Tom Waite; [email protected]
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