Jarvis agrees sale of PFI bidding arm to Hochtief

Jarvis has reached agreement with Hochtief Developments (UK) to dispose of its PFI bidding business for £1.2m.

A deferred consideration of up to £300,000 will also become payable if financial close is achieved on two of the existing PFI bids within two months following completion of the disposal.

The transaction will involve the transfer of up to a dozen employees and the assumption by Hochtief of two property leases.

Jarvis has also granted Hochtief an option to take over its rights and obligations under the facilities management contracts in respect of the Belfast courts and Irish schools for the sum of £1. That option is exercisable at any time up to 16 December 2004.