UK - Jarvis confirms disposal of PFI business to Hochtief

Option to take over rights under two contracts

Jarvis has confirmed that it has reached agreement with Hochtief Development, a wholly-owned subsidiary of Hochtief AG, to dispose of its PFI bidding business for a consideration of £1.2m payable on completion. If financial close is achieved on two of the existing PFI bids within two months following completion of the disposal then a further £300,000 will be paid.

The transaction will involve the transfer of approximately 12 employees and the assumption by Hochtief of two property leases.

In addition, Jarvis has granted Hochtief an option to take over its rights and obligations under the facilities management contracts in respect of the Belfast courts and Irish schools for the sum of one pound. That option is exercisable at any time up to 16 December 2004.