Information  X 
Enter a valid email address

Interserve PLC (IRV)

  Print      Mail a friend       Annual reports

Friday 15 March, 2019

Interserve PLC

Successful completion of sale of the Group

RNS Number : 0891T
Interserve PLC
15 March 2019
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF EU REGULATION 596/2014.

FOR IMMEDIATE RELEASE

15 March 2019

INTERSERVE PLC (in administration)

Successful completion of sale of the group

·      Administrators have been appointed to Interserve Plc (in administration) ("Plc") and the completion of the sale of Plc's business and assets (i.e. the entire group) (the "Group") to a newly incorporated company to be controlled by the Group's lenders has occurred

 

·      A deleveraging transaction will now be implemented, and is expected to complete shortly after the sale of the Group, and will involve the equitisation of approximately £485 million of existing debt and £110 million of additional liquidity

 

·      Under new ownership, the Group will have a strong balance sheet, competitive financial structure and a fundamentally solid foundation from which to deliver on its long term strategy

 

·      Interserve confirms it is business as usual for employees, customers, suppliers, and other stakeholders

 

·      Interserve continues to focus on providing an excellent service to its customers, and pursuing opportunities where Interserve is best placed to win and deliver contracts successfully

Interserve, the international support services, construction and equipment services group, announces the appointment of Alan Hudson and Hunter Kelly of Ernst & Young LLP as administrators to Plc and the successful completion of the sale of the Group, other than Plc, to a newly incorporated company, Montana 1 Limited (which is in the process of being renamed as Interserve Group Limited) ("Interserve Group"). 

The sale of the Group completed on Friday 15 March immediately following the appointment of the administrators, minimising any disruption to the business, providing continuity for customers and suppliers, and protecting the Group's employees (including the beneficiaries of the Group's pension schemes). 

The transfer of ownership to Interserve Group enables a deleveraging of the Group to provide the business with a strengthened balance sheet and a more competitive financial structure to support its future growth.  This deleveraging transaction is expected to complete shortly after the completion of the sale of the Group.  At completion, Interserve Group will be owned by the Group's lenders.

Following completion of the deleveraging transaction, Interserve Group will be a well-capitalised, leading Support Services, Construction and Equipment Services company, consisting of:

·      a leading Support Services business in the UK and Middle East, with excellent positions in growing markets and strong cash flow and significant margin improvement potential;

·      a robust Construction business, with a clear strategy to use Interserve's market position to focus on the most attractive and lower risk opportunities in construction, building fit-out and infrastructure services, predominantly in the UK; and

·      a leading Equipment Services business, which solves complex engineering problems for its customers, through the application of world-class design and logistics capabilities, backed up by an extensive fleet of specialist equipment.

 

Debbie White, Chief Executive Officer, Interserve Group said:

"With a stronger financial platform in place, Interserve will be able to concentrate on delivering value for our customers. The Group's transformation programme will continue, focused on improving our value propositions for customers, standardising our operational delivery, making Interserve simpler and more efficient through our Fit for Growth initiatives, and embedding a culture of ownership and openness throughout the Group. Interserve is fundamentally a strong business and with a competitive financial platform in place we see significant opportunities ahead as a best-in-class partner to the public and private sector."

The Company has requested the cancellation of the Company's ordinary shares from listing on the premium segment of the Official List of the Financial Conduct Authority and from trading on the main market for listed securities maintained by the London Stock Exchange plc. The ordinary shares were suspended at 12.35 p.m. today and cancellation is expected to take place at 8.00 a.m. on 18 March 2019.

 

For further information please contact:

Interserve

Jonathan Refoy                                                                                    +44 (0)7880 315877

Tulchan Communications (PR Adviser)

Martin Robinson                                                                             +44 (0) 207 3534200

Lisa Jarrett-Kerr

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
DISBRGDXXUBBGCU

a d v e r t i s e m e n t