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.Â
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.Â
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.Â Â
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).Â
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)