16th Apr 2009 07:00
INTERSERVE GENERATES £15m CASH FROM PFI INTERESTS
Interserve, the services, maintenance and building group, today announces the crystallisation of £15m cash from two projects within its PFI portfolio:
* The disposal of its 50 per cent equity and loan stock interests in the
Sheffield Schools PFI project to Innisfree, its co-shareholder.
* The repayment of the majority of its subordinated debt in the landmark
University College London Hospital (UCLH) PFI project.
The consideration relating to the Sheffield Schools investment is £7.2 million, implying a discount rate of 6.8 per cent. This will result in an exceptional profit of £3.4 million, representing a multiple of 2.4 times book value. Having built the six Sheffield schools Interserve has been delivering facilities management services since 2001 and will continue to do so for the next 17 years.
Following this sale the group's PFI portfolio will comprise 30 signed projects with four more at preferred bidder stage. Its investment commitment in signed projects is £64 million, of which £39 million has been paid; a further £23 million is associated with the preferred bidder projects.
Separately, Interserve received repayment of the majority of its subordinated debt in the landmark UCLH PFI project. The debt attracted an 8 per cent return and its repayment follows successful completion on time of phase 2, the Elizabeth Garrett Anderson wing, which has increased the capacity of the hospital from 685 beds to 756 beds.
"These transactions demonstrate both the substantial value created within our PFI portfolio and our continued ability to generate cash from it," said Adrian Ringrose, Interserve's Chief Executive.
- Ends -
For further information please contact:
Tim Jones, Group Finance Director 0118 932 0123 Matt Jones, Head of Investor Relations 0118 960 2280 Tom Roberts, Maitland 020 7379 5151 About Interserve
Interserve's vision is to be the Trusted Partner of all our stakeholders. We are a services, maintenance and building group operating in the public and private sectors in the UK and internationally. We offer advice, design, construction and facilities management services for society's infrastructure and provide a range of plant and equipment in specialist fields. Interserve is based in the UK and is a FTSE 250 company. It has revenue of £1.8 billion and a workforce of 50,000 people worldwide. Website: www.interserve.com.
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