11th Feb 2008 07:00
Kier Group PLC11 February 2008 11 February 2008 Kier sells its investment in Hairmyres Hospital PFI Kier Group plc announces the disposal on 8 February 2008 of its 50% PrivateFinance Initiative (PFI) investment in Hairmyres Hospital to Innisfree M &G PPPFund. This East Kilbride hospital was one of Kier's first investments in a PFIproject, which achieved financial close in March 1998. The first patients wereadmitted to the hospital on 25 March 2001. Innisfree has been Kier's investmentpartner throughout the project and as a result of this transaction now holds100% of the investment. The consideration for the shares and loan notes making up Kier ProjectInvestments Limited's 50% interest in Prospect Healthcare (Hairmyres) Group plctotalled £13.8m, which was received in cash. The transaction will result in thedisclosure of a profit, of around £16m in the second half of Kier's financialyear. This includes profit previously deferred following a refinancing inAugust 2004, and represents a return of around five times our originalinvestment. Hairmyres Hospital is a district general hospital with a 24-hour accident andemergency department. It has 415 inpatient and day care beds. It won the BestMajor Operational PFI Hospital Award in 2004. Kier Project Investment manages Kier Group's PFI interests the core strength ofwhich is its ability to bring together the diverse range of skills and resourceswithin the Group and combine these with a financial package to deliver highquality buildings and services to meet the needs of the public sector. Kier Group plc will be announcing its interim results, for the six months to 31December 2007, on 27 February 2008. - ENDS - For further information, please contact: Deena MattarKier Group plc Tel: 01767 640111 Matthew MothMadano Partnership Tel: 020 7593 4000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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