Troubled support services group finalises Tube Lines sale and refinances uncompleted construction schemes
Jarvis moved closer to financial stability today when it announced it had completed the sale of its stake in consortia Tube Lines to Amey for £146.8m.
The firm also said it had signed refinancing agreements for 14 of its largest unfinished construction schemes and had extended financing arrangements with its bank until March 2006.
The firm said £110m had been committed to the completion of the 14 schemes, which will be put into independent trusts. Of the 14 five will be taken over by French contractor Vinci.
Chief executive Alan Lovell claimed the deals ended Jarvis's painful past year. He said: "The completion of these three interrelated transactions draws a line under Jarvis' troubled financial history and enables us to focus on the future development of our promising core businesses of rail, roads and plant hire."
The move also pleased Tube Lines. Chief executive Terry Morgan said: "I am very glad the uncertainty surrounding our shareholders is at an end. Amey and Bechtel bring a welath of experience, strength and stability to Tube Lines."