UK - Jarvis sells PFI bidding operations

Disposal programme underway in attempt to reduce debt

Jarvis has signed heads of terms for the sale of its PFI bidding operations (comprising three projects at preferred bidder stage with the possibility of a bid pipeline) to Hochtief Projektentwicklung, a wholly-owned subsidiary of Hochtief AG. This comes as part of a disposals programme to ease its financial problems caused by its £230m debt.

Such terms anticipate the appointment of the Jarvis facilities management team to carry out the facilities management stage of the relevant projects. The proposed transaction is conditional on due diligence and completion of documentation and is not expected to be material in the context of the Jarvis Group.

In October this year Jarvis announced that it was selling the business to French construction company Vinci, but the companies failed to reach an agreement before the end of the period of exclusive negotiations.

Jarvis has also recently confirmed that Norfolk County Council has decided not to proceed further with the bid made by Jarvis' Accommodation Services Division to extend and refurbish 37 schools under a PFI agreement where the division had been selected as preferred bidder.