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TubeLines sale to raise £120m
16:52 27 Oct 2004
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Jarvis is expected to raise about £120m from the sale of its
stake in TubeLines. Talks with Star Capital Partners, a private
equity group, are said to be at an advanced stage.
The three partners in TubeLine are Jarvis, Bechtel and Amey. Initially they each put in £60m. Amey's inability to raise its dues resulted in it being taken over by Spanish group Ferrovial.
Bechtel is thought to be preparing to put its investment on the market as well.
While Jarvis's survival plan focuses on the need to cut debt, not all the potential £120m will be available for this purpose. "Jarvis is contracted to put more money into TubeLines in 2007, so this figure has to be set against the sale price," a source said. "However, getting £120m is not an unreasonable figure to expect Star to be paying as there has been a good competitive process."
Another source said: "Jarvis is in a good position. There is a shortage of second-hand infrastructure portfolios and five big funds are after them."
The three partners in TubeLine are Jarvis, Bechtel and Amey. Initially they each put in £60m. Amey's inability to raise its dues resulted in it being taken over by Spanish group Ferrovial.
Bechtel is thought to be preparing to put its investment on the market as well.
While Jarvis's survival plan focuses on the need to cut debt, not all the potential £120m will be available for this purpose. "Jarvis is contracted to put more money into TubeLines in 2007, so this figure has to be set against the sale price," a source said. "However, getting £120m is not an unreasonable figure to expect Star to be paying as there has been a good competitive process."
Another source said: "Jarvis is in a good position. There is a shortage of second-hand infrastructure portfolios and five big funds are after them."
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