HOOK (dpa-AFX) - Serco Group Plc. (SRP.L), in an update on its planned acquisition of a portfolio of selected UK health facilities management contracts from certain subsidiaries of Carillion plc, said that a revised Business Purchase Agreement 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 29.7 million pounds. The potential revenues and profitability of the contracts being transferred under the BPA are substantially unchanged from those indicated in 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.
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