John Laing Group plc Announcement of Disposal (5598H)
March 13 2018 - 5:51AM
UK Regulatory
TIDMJLG
RNS Number : 5598H
John Laing Group plc
13 March 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Sale of 15% shareholding in InterCity Express Programme (IEP)
Phase 1 project
John Laing Group plc (John Laing or the Company), the
international originator, active investor and manager of
infrastructure projects, announces that, following the receipt of
final bids earlier this week, it has agreed to sell its remaining
15% interest in the IEP Phase 1 project to a subsidiary of AXA SA,
a worldwide leader in insurance and asset management.
The IEP Phase 1 project comprises a 27.5-year contract to
design, manufacture, finance, deliver into daily service and
maintain a fleet of 57 InterCity Express Trains and the
construction and/or refurbishment of three associated depots for
the Great Western main line in the UK. Hitachi Rail Europe is
responsible for supplying the trains and ensuring they perform
reliably on a daily basis.
The consideration, which is in excess of John Laing's most
recent portfolio valuation as at 31 December 2017, is GBP227.5
million (net of costs) and will be satisfied in cash. The
transaction is subject to customary anti-trust approval, and
consents from the senior lenders to the project and completion is
expected to take place in Q2 2018. John Laing intends to recycle
the capital into future investment commitments, in line with the
Company's self-funding model. As at 31 December 2017, the Group's
pipeline of opportunities in PPP and renewable energy amounted to
GBP2.15 billion, including nine shortlisted PPP bids due to close
within 18 months and four exclusive renewable energy positions,
together representing an investment opportunity of approximately
GBP350 million.
On 8 March 2018, the Company announced its results for the year
ended 31 December 2017 at the same time as a 1 for 3 rights issue.
At the time, John Laing indicated that the sale of its 15% interest
in IEP Phase 1 could be announced during the rights issue period.
John Laing also gave guidance for divestments in 2018 to be broadly
in line with guidance for investment commitments (before taking
into account the rights issue) of approximately GBP250 million.
This sale of its remaining 15% interest in IEP Phase 1 is
consistent with that guidance for divestments.
Olivier Brousse, John Laing's Chief Executive Officer, said:
"We are pleased to have realised good value for our investment
and to have taken a major step towards our divestments guidance for
the year. Our partnership with Hitachi continues through our
investment in the IEP Phase 2 project for the East Coast main line
with first train delivery expected by the end of this year"
Further information
Analyst/investor enquiries:
Patrick O'D Bourke, Group Finance Director +44 20 7901 3200
Media Enquiries:
James Isola, Maitland +44 20 7379 5151
This information is provided by RNS
The company news service from the London Stock Exchange
END
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