Hochtief looks set to buy Jarvis’s PFI bidding operations after Vinci and Jarvis are dumped from Norfolk schools PFI.
Jarvis has announced that German developer Hochtief Projektentwicklung has replaced Vinci as the potential purchaser of its PFI bidding operations.
Hochtief has entered into an exclusivity agreement with Jarvis. If the deal goes ahead Jarvis will carry out the facilities management of the PFI projects.
It was confirmed this week that Jarvis and Vinci had been dropped by Norfolk County Council from a £92m schools PFI. This leaves Jarvis with only three PFIs where it is preferred bidder.
The council said: “The county council’s cabinet decided that it would not be in the best interests of Norfolk to continue with Jarvis/Vinci to deliver the 37-school PFI.”
“The decision was taken because neither Jarvis nor Vinci can confirm they can deliver the project as agreed with Jarvis earlier this year.”
Today’s news follows a frantic period of activity for Jarvis as it attempts to secure its future. This week major shareholder K Capital Partners disposed of a 24% stake in Jarvis.
The Boston-based hedge fund had built up a 25% shareholding in Jarvis but sold stock this week following the latest financial warnings from the troubled support services firm.
Jarvis shares fell 19% yesterday to 13p. This followed a 60% fall on Monday in response to an announcement from the firm that losses would be greater than expected.