8th Dec 2005 13:34
Shanks Group PLC08 December 2005 8 December 2005 Company announcement Shanks Group plc joins forces with Babcock & Brown to Tender for Greater Manchester Waste Disposal Authority PFI project Shanks Group plc, a leading European waste management group, today announcesthat it has entered into an agreement with Babcock & Brown, to present a jointtender for the Greater Manchester Waste Disposal Authority (GMWDA) wastemanagement PFI project requiring an estimated £300m of capital investment. The agreement will see the two companies create a joint venture partnership tobid for the project, combining their complementary skills and experience. Shanksis an established waste management company with proven expertise in theprovision of innovative high technology solutions for municipal domestic waste.The Group has already been appointed to manage the high profile integrated wastemanagement PFI contracts for the East London Waste Authority (ELWA), Argyll &Bute and Dumfries & Galloway. At the landmark half million tonnes per annum PFI project for ELWA, Shanks isconstructing specialist mechanical biological treatment plants to process theauthority's household waste. This technology meets the needs of the changing UKand European legislative and fiscal environment driven by the Landfill Directiveand Landfill Tax. Babcock & Brown is a global investment and advisory firm with long-standingcapabilities in structured finance and the creation, syndication and managementof assets and cash flow-based investments. It was founded in 1977 and is listedon the Australian Stock Exchange and has a market capitalisation ofapproximately A$5.5 billion. Babcock & Brown operates from 18 offices across Australia, the United States,Europe, Asia and Africa and has in excess of 600 employees worldwide. It hasbeen an active participant in the UK PFI sector since 1997 having developed 15UK PFI projects with a total gross development value in excess of £425m in areassuch as law and order, education and health. Commenting on the partnership Michael Averill, Group Chief Executive of Shankssaid: "We are delighted to have Babcock & Brown as our joint venture partners,who have extensive experience within the PFI arena. We fully believe that theunique strengths of each party will enhance our bid and will improve our abilityto provide GMWDA with the high quality facilities and services that they expect." Notes to Editors: Shanks Group Plc is one of the UK's largest waste management companies and, withits operations in Belgium and The Netherlands, is also a leading player in theEuropean market. Employing over 3,000 people and based at 100 sites, the Groupoffers a wide and innovative range of waste management solutions within itsvarious collection, transport, local authority, recovery, recycling, treatmentand disposal services. Following a strategic review in 2003, Shanks has decided to focus its UKoperations on the emerging market for long term municipal waste contracts usingnew technologies, and on the recycling of non-hazardous industrial andcommercial waste as Landfill Tax increases. In October 2005 Shanks sold themajor part of its UK hazardous waste operations. Shanks also sold its UKlandfill interests to Terra Firma in July 2004, allowing the Group to bothsignificantly reduce its debt and have the flexibility to pursue opportunitiesin continental Europe as well as the UK integrated municipal waste contracts. Babcock & Brown is a global investment and advisory firm with long-standingcapabilities in structured finance and the creation, syndication and managementof assets and cash flow-based investments. It was founded in 1977 and is listedon the Australian Stock Exchange. Babcock & Brown operates from 18 offices across Australia, the United States,Europe, Asia and Africa and has in excess of 600 employees worldwide. It hasfive operating divisions including real estate, infrastructure and projectfinance, operating leasing, structured finance and corporate finance. Thecompany has established a funds management platform across the operatingdivisions that has resulted in the establishment of a number of focusedinvestment vehicles in areas including real estate, renewable energy andinfrastructure. Babcock & Brown has been an active participant in the UK PFI sector since 1997having developed 15 UK PFI projects with a total gross development value inexcess of £425m in areas such as law and order, education and health. It iscurrently at a preferred bidder stage on an additional three projects with atotal gross development value of in excess of £300m and is actively biddingother PFI projects in the UK, Europe and Australia. Ends For further information contact: Michael Averill, Group Chief Executive Fraser Welham, Group Finance Director Shanks Group plc Telephone +44 (0)1628 524523 Or Ginny Pulbrook Citigate Dewe Rogerson Telephone +44(0)20 7282 2945 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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