Acquisition and Analyst & Inv

RNS Number : 8345T

Shanks Group PLC

05 October 2010

 



Shanks takes on United Utilities' PFI Waste Business

Shanks Group plc, Europe's largest listed independent waste management business, is today hosting an event in London for analysts and investors.

Ahead of this presentation, Shanks announces it has acquired the UK waste PFI interests of United Utilities (UU), strengthening its position as one of the country's leading operators of municipal waste contracts.

 
Shanks will take UU's place on all of its existing bids including preferred bidder for a PPP municipal solid waste (MSW) treatment contract for both Derbyshire County and Derby City Councils and short-list positions at Leicester, Derry and Gloucester. Other than a small initial payment any consideration will be contingent upon the successful financial closure of individual projects and payable from win fees.

Shanks will also take on additional skilled technical and commercial resources from the UU bid team, strengthening and complementing its existing resources to enable it to deliver on its increased pipeline of PFI opportunities.

The UU bids will principally employ Mechanical Biological Treatment (MBT) alongside gasification processes for thermal treatment of waste, which complement Shanks' own MBT technology platform.

On 30 September, Shanks announced it had sold all of the subordinated debt and 80 per cent of the equity in the East London Waste Authority (ELWA) and Dumfries & Galloway (D&G) PFI contracts to John Laing Investments.  Shanks confirmed it will retain the long term operating contracts for both ELWA and D&G.

Tom Drury, Group Chief Executive of Shanks, commented:

"This acquisition represents an important step forward in the roll-out of our PFI strategy, increasing our pipeline of opportunities and bringing us closer to our next full award as Preferred Bidder for Derbyshire. The sale of the PFI equity stakes and the addition of UU's PFI waste business simplifies our PFI business and strengthens our position as one of the leading operators in the UK PFI waste market."

Today's event for analysts and investors is intended to provide a greater understanding of the Company's strategy and activities and no new material information will be provided. The presentation will be posted later today on the Shanks Group's website - http://www.shanksplc.co.uk

For further information, please contact:

Tulchan Communications                              [phone]

John Sunnucks / David Allchurch

 

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