Kier said won the contract to build the 12-storey, 388,000-sq-ft “P2” building at Lewis Cubitt Square, King’s Cross, London on 20 December (Kier Group)

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Kier sells stake in Australian road JV to cut debt, and wins more projects

21 December 2018 | By GCR Staff | 0 Comments

Troubled UK contractor Kier today completed the sale of its stake in a profitable Australian road asset management company for £24m, freeing an expected £15m in profit to help pay off its debts. 

Downer Group bought its joint-venture partner Kier’s stake in KHSA Limited, which Kier acquired with the Mouchel group of companies in 2015. KHSA reported a profit before tax of £7m this year.

Kier announced the plan to sell its stake on 15 November

The news followed reports yesterday that Kier shareholders took up just 38% of the new shares issued by the firm as part of a £264m rights issue aimed at paying down its debt.

As Construction Manager reported, Kier will still get £250m net cash for the rights issue because it was fully underwritten by institutional investors.  

Chief executive Haydn Mursell said: “Following the completion of the £250m rights issue, Kier enters 2019 with a strong balance sheet which puts us in an excellent competitive position.” Kier’s net debt as of 31 October 2018 was £624m.
The company continues to win projects.

Yesterday Kier announced it had been appointed by the King’s Cross Central Limited Partnership to build the 12-storey, 388,000-sq-ft “P2” building at Lewis Cubitt Square, King’s Cross, London (pictured). 

Part of a 67-acre redevelopment, the office complex will include a 600-seat theatre and retail space.

Also this month Kier won a £45m contract to design and build a new education campus at Northstowe from Cambridgeshire County Council.

Image: Kier said won the contract to build the 12-storey, 388,000-sq-ft “P2” building at Lewis Cubitt Square, King’s Cross, London on 20 December (Kier Group)

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