Jarvis ready to sell Baltic Rail Services stake

Jarvis expects to complete the sale of its interest in Baltic Rail Services OU, the majority shareholder in Estonian Railways (AS Eesti Raudtee) next month, it has revealed today (Thursday).

The transaction will be completed by the sale of Jarvis' interest in its Dutch joint venture, Jarvis Estonia BV, to EEIF Rail BV, an affiliate of Jarvis' joint venture partners in Jarvis Estonia BV, for £6.75m.

The disposal of this overseas investment reflects the Group's refocusing its activities following the withdrawal from rail maintenance. All proceeds will be used for working capital in the Group.

The net asset value of Jarvis' investment in Jarvis Estonia BV at 30 September 2003 was £5.8m inclusive of equity accounted profits.

The sale is expected to be completed on or before 9 August.