UKENGINEERING and PFI group Jarvis announced on January 29 that it had completed the sale of its one-third stake in Tube Lines to Amey for a total gross consideration of £146·8m.
This includes £95·5m from Amey, release of existing cash collateral of £51m mostly relating to the assumption by Amey of a Jarvis equity bridge loan of £45m, and the release of a contingent liability of £11·7m to subscribe for further loan stock in Tube Lines (Holdings) Ltd. Amey now holds two-thirds of Tube Lines, and Bechtel one-third.
Tube Lines Chief Executive Terry Morgan said ’I am very glad that the uncertainty surrounding our shareholders is at an end. Amey and Bechtel bring a wealth of experience, strength and stability to Tube Lines’.
Jarvis also announced that it had signed binding refinancing agreements for all 14 of its largest unfinished construction projects, and extended its financing arrangements through to March 27 2006. Group Chief Executive Alan Lovell said ’the completion of these three inter-related transactions draws a line under Jarvis’s troubled financial history and enables us to focus on the future development of our promising core businesses of rail, roads and plant hire’.