12th Jul 2007 13:24
AMEC PLC12 July 2007 AMEC plc - Disposal12 July 2007 AMEC plc ("AMEC") Divestment of Project Investments • Land Securities Trillium to acquire AMEC's Project Investmentsbusiness ("Project Investments"), the management team and the underlying ninePFI assets for £163.5 million. • Only the sale of AMEC's Building and Facilities Services business nowremains to complete the divestment of AMEC's Built Environment businesses, inline with the strategy first announced on 13 December 2006. The transaction AMEC and Land Securities Trillium ("LST") today announce that they have agreedterms for the sale of Project Investments. LST will pay a cash consideration of £163.5 million for Project Investments. Sale of the Project Investment's assets is subject to receiving consents frompublic authorities and co-shareholders and lenders in the projects. To theextent that consents are not obtained assets will, at AMEC's discretion, eitherbe retained by AMEC or sold to co-shareholders in line with any pre-emptionprovisions as appropriate. The consideration paid by LST will be adjustedaccordingly. Completion is expected to occur by 31 October 2007 and proceeds from thetransaction will be held on deposit. This transaction does not include AMEC's investments in the Incheon BridgeProject in Korea and the AMEC Wind assets and business which will be retained byAMEC. Chief Executive, Samir Brikho, said: "I am delighted that we have found a strongpurchaser who wants to develop further and invest in this market-leadingbusiness. The sale of our Building and Facilities Services business is progressing welland will conclude the divestment of our four Built Environment businesses. AMECwill then move forward to the next phase of its strategy to become a leadingsupplier of high value consultancy, engineering and project management servicesto the world's energy and industrial process markets." Background On 13 December 2006, AMEC announced its new vision, to be a leading supplier ofhigh value consultancy, engineering and project management services to definedmarket segments within the world's energy and industrial process industries. Consistent with this vision, AMEC initiated a process to divest itself of thefour non-core businesses that make up the Built Environment division, togetherwith various specialist businesses, as quickly as possible during 2007,consistent with optimising value. This programme of divestments is now almostcomplete. On 4 June 2007, AMEC and Morgan Sindall plc announced that they had agreed termsfor the divestment of the Property Developments and UK Building and CivilEngineering businesses. The transaction is subject to approval by Morgan Sindallshareholders and is expected to complete in late July. The divestment of ProjectInvestments is the subject of this announcement and the sale of the Building andFacilities Services business is progressing well. In addition, five specialist non-core businesses have been sold: • AMEC SPIE Rail - completed in April 2007 • Buchan Concrete Solutions - completed in April 2007 • Dynamic Structures - completed in April 2007 • AMEC SPIE Capag - completed in May 2007 • Midwest Pipelines - completed in June 2007 Business description Project Investments has been in the UK Public Private Partnerships ("PPP")market since the introduction of the Private Finance Initiative and has aspecialist team of professionals engaged in the complete PPP delivery structure,from front end bidding to long-term management of the investment. The businessfocus has been on projects where AMEC can secure multiple income streams frominvesting in, delivering and maintaining assets. Project Investments has aportfolio of nine PPP projects in the UK focused on the transport, healthcareand education sectors. Project Investments is led by Janet Chamberlain and she is supported bydirectors Ian Wolstenholme (New Business); Tony Rogers (Legal Services); PhillipDodd (Project Finance). This highly successful group and their team of newbusiness and investment specialists will be integrated into the LST team. Project Investments employs a total of 37 full time equivalent employees. In theyear ended 31 December 2006, Project Investments generated profit of £5.5million before interest, tax and intangible amortisation and exceptional items.Gross assets at 31 December 2006 were £72 million. Enquiries to: AMEC plc + 44 (0)20 7634 0000 Analysts and investors:Samir Brikho, Chief ExecutiveStuart Siddall, Finance DirectorNeil Jamieson, Director of Investor RelationsSue Scholes, Director of Communications Media:Frank Stokes, Media Relations Manager +44 (0) 7712 008356 Notes to editors AMEC plc AMEC is an international project management and services company thatdesigns, delivers and supports client assets for customers across the public andprivate sectors. In its core businesses, AMEC employs more than 16,000 peopleworking from a network of offices throughout the U.K., U.S. and Canada, as wellas regional offices and projects worldwide. AMEC shares are traded on the LondonStock Exchange where the company is listed in the Support Services Sector (LSE:AMEC:L). Internet users will be able to view this announcement, together with otherinformation about AMEC plc, at the company's web site www.amec.com. N M Rothschild & Sons Limited ("Rothschild") and UBS Limited ("UBS") are actingas financial advisers to AMEC in relation to the transaction. Rothschild and UBS are acting exclusively for AMEC and are not acting for anyother person in relation to the transaction and will not be responsible to anyperson other than AMEC for providing the protections afforded to clients ofRothschild and UBS Limited or for providing advice in relation to the contentsof this announcement or the transaction. Land Securities Trillium Part of the Land Securities Group, Land Securities Trillium ("LST") is one ofthe most established and innovative names in property outsourcing and PPP. Itfocuses on understanding customers' business requirements and meeting themthrough high quality and innovative service delivery. LST manages and providesservices to numerous commercial properties nationwide, for a growing number ofcompanies and government departments. These activities sit alongside LandSecurities' investment portfolio, worth many billions of pounds, which includesa vast range of shopping centres and retail parks as well as landmark buildingsin London. LST is also involved in a major urban community developmentprogramme. Land Securities Trillium currently runs and operates over 100 PFI/PPP projects,predominantly in the health and education sectors. For further information on Land Securities Trillium visit: www.lstrillium.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AMFW.LLand Securities