John Laing sells Project Management Services to HCP
Completion is expected to occur no later than the fourth quarter following receipt of a number of consents at project level. As part of the sale, it is expected that approximately 90 staff roles and 62 Management Services Agreements (MSAs) will transfer to HCP.
The background to the sale is that whereas John Laing's PMS activities are mainly provided under MSAs to UK projects which are operating, and in which John Laing, John Laing Infrastructure Fund and John Laing Environmental Assets group are investors, the group's future investment pipeline is focused on greenfield opportunities.
The consideration receivable reflects the small contribution to John Laing's profits in 2015 from the business and assets being sold. The average period remaining until the MSAs being transferred are due for renewal is between four and five years.
John Laing's CEO, Olivier Brousse, said: "The transaction is consistent with our strategy of focusing on our core business of investment in and active management of greenfield infrastructure assets across our main markets of Europe (including the UK), Asia Pacific and North America.
"We look forward to an ongoing relationship with our PMS colleagues following the sale to HCP as they continue to provide high quality support to many of our projects." ■