Carillion PLC Disposal (0643V)
October 31 2017 - 2:00AM
UK Regulatory
TIDMCLLN
RNS Number : 0643V
Carillion PLC
31 October 2017
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM
ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR IMMEDIATE
RELEASE
31 October 2017
Carillion plc ("Carillion" or the "Group")
GBP13.8 million disposal of interests in Ask Real Estate
The Board of Carillion today announces the disposal of the
Group's:
(i) 66.67% shareholding in Ask Real Estate Limited ("AREL"), and
a shareholder loan made by Carillion Construction Limited to AREL's
subsidiary, Ask Central Limited; and
(ii) 50% interest in Ask Carillion Developments LLP ("ACD"),
to one or more wholly owned subsidiaries of Dukehill Limited
("Dukehill"), for aggregate cash consideration of GBP13,800,000
(the "Transaction"). GBP1,000,000 of the cash consideration is
contingent on the sale of 100 Embankment and will be paid by
Dukehill within 5 business days of signing of the sale
documentation in relation to this.
AREL and ACD (through their wholly owned subsidiaries and other
associated entities) carry out commercial property development
activities, together with various partners, in the North of the UK,
including Manchester, Liverpool and Leeds.
For the 2016 Financial Year, the interests that are the subject
of the Transaction contributed GBP4.1 million of revenue, GBP11.6
million profit before tax, and GBP19.2 million gross assets as at
31 December 2016. The contribution to profit from Carillion's
interests in AREL and ACD can vary significantly from year to year.
The transaction is expected to generate a modest profit on
disposal, and the interests being sold were not expected to make a
material contribution to overall Group profit for 2017.
The transaction consideration will be applied in reducing the
Group's overall leverage position and, following the Transaction,
AREL will be deconsolidated from the Group's accounts. AREL
managing director, John Hughes and finance director, Jonathan
Cross, who together own 33.33% of AREL, will retain their executive
positions.
Commenting, Keith Cochrane, Interim Chief Executive, said:
'We are pleased to be able to announce further progress. Much
remains to be done, and we are continuing to execute our plans to
refocus the business, reduce cost and strengthen our balance
sheet.'
The person responsible for the release of this announcement on
behalf of Carillion plc is Westley Maffei.
Enquiries:
Investors/ Analysts:
Carillion plc
Kellie McAvoy, Head of Investor Relations +44 (0) 1902
906333
John Denning, Director Group Corporate Affairs
Media:
Teneo Blue Rubicon +44 (0) 207 420 3197
Charles Armitstead / Haya Herbert-Burns
This and other Carillion news releases can be found at
www.carillion.plc
Cautionary statement
This announcement may contain indications of likely future
developments and other forward-looking statements that are subject
to risk factors associated with, among other things, the economic
and business circumstances occurring from time to time in the
countries, sectors and business segments in which the Group
operates. These and other factors could adversely affect the
Group's results, strategy and prospects. Forward-looking statements
involve risks, uncertainties and assumptions. They relate to events
and/or depend on circumstances in the future which could cause
actual results and outcomes to differ materially from those
currently anticipated. No obligation is assumed to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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