Serco Group PLC Serco SEA update on health facilities acquisition (8375E)
14 February 2018 - 6:00PM
UK Regulatory
TIDMSRP
RNS Number : 8375E
Serco Group PLC
14 February 2018
Update on health facilities management acquisition
14 February 2018
Serco Group plc
LEI: 549300PT2CIHYN5GWJ21
Further to the announcement on 13 December 2017, Serco Group plc
('Serco' or 'the Group'), the international service company,
provides an update on its planned acquisition of a portfolio of
selected UK health facilities management contracts from certain
subsidiaries of Carillion plc. A revised Business Purchase
Agreement ('BPA') has now been signed with the Special Managers and
Provisional Liquidators acting on behalf of the relevant Carillion
subsidiaries. The agreement covers substantially all of the assets
that were the subject of the previous agreement. Upon the receipt
by the Special Managers and Provisional Liquidators of the
requisite third party consents, each individual contract will be
transferred to Serco on a cash-free, debt free basis, with the
consideration to be paid in instalments and to be satisfied using
Serco's existing financing facilities.
If all the contracts are transferred to Serco under the revised
BPA process, the total consideration payable would be GBP29.7m. The
potential revenues and profitability of the contracts being
transferred under the BPA are substantially unchanged from those
indicated in our announcement of the 13 December 2017; the change
in consideration reflects Serco's re-evaluation of potential
liabilities, indemnities, warranties and the additional working
capital investment required as a result of Carillion's
liquidation.
As already noted, Serco will only include the effect of the
transaction within its financial forecasts once there is certainty
regarding the necessary consents for each contract. Serco will
continue to work with all relevant parties to seek to give effect
to achieving the transfers. Further updates will be provided when
appropriate.
Ends
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386
227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386
226
About Serco
Serco is a leading provider of public services. Our customers
are governments or others operating in the public sector. We gain
scale, expertise and diversification by operating internationally
across five sectors and four geographies: Defence, Justice &
Immigration, Transport, Health and Citizen Services, delivered in
UK & Europe, North America, Asia Pacific and the Middle
East.
More information can be found at www.serco.com
Forward looking statements
This announcement contains statements which are, or may be
deemed to be, "forward looking statements" which are prospective in
nature. All statements other than statements of historical fact are
forward looking statements. Generally, words such as "expect",
"anticipate", "may", "should", "will", "aspire", "aim", "plan",
"target", "goal", "ambition" and similar expressions identify
forward looking statements. By their nature, these forward looking
statements are subject to a number of known and unknown risks,
uncertainties and contingencies, and actual results and events
could differ materially from those currently being anticipated as
reflected in such statements. Factors which may cause future
outcomes to differ from those foreseen or implied in forward
looking statements include, but are not limited to: general
economic conditions and business conditions in Serco's markets;
contracts awarded to Serco; customers' acceptance of Serco's
products and services; operational problems; the actions of
competitors, trading partners, creditors, rating agencies and
others; the success or otherwise of partnering; changes in laws and
governmental regulations; regulatory or legal actions, including
the types of enforcement action pursued and the nature of remedies
sought or imposed; the receipt of relevant third party and/or
regulatory approvals; exchange rate fluctuations; the development
and use of new technology; changes in public expectations and other
changes to business conditions; wars and acts of terrorism; and
cyber-attacks. Many of these factors are beyond Serco's control or
influence. These forward looking statements speak only as of the
date of this announcement and have not been audited or otherwise
independently verified. Past performance should not be taken as an
indication or guarantee of future results and no representation or
warranty, express or implied, is made regarding future performance.
Except as required by any applicable law or regulation, Serco
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward looking statements
contained in this announcement to reflect any change in Serco's
expectations or any change in events, conditions or circumstances
on which any such statement is based after the date of this
announcement, or to keep current any other information contained in
this announcement. Accordingly, undue reliance should not be placed
on the forward looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDLIFSRFRISLIT
(END) Dow Jones Newswires
February 14, 2018 02:00 ET (07:00 GMT)
Serco (LSE:SRP)
Historical Stock Chart
From Apr 2024 to May 2024
Serco (LSE:SRP)
Historical Stock Chart
From May 2023 to May 2024