Firm sells interest in company for 拢24m
Kier has sold its interest in construction group KHSA to the Downer Group, the Australian conglomerate, for AUS$43.7m (拢24m).
KHSA had been a part of Mouchel, the consultancy which Kier acquired in 2015 for 拢265m and later sold to WSP, and been in a joint venture with Downer, providing road asset management and maintenance work in Australia.
Sydney-based Downer employs nearly 60,000 people worldwide and has interests in construction, mining and manufacturing. Last year it turned over AUS$12.6bn (拢7bn) and reported earnings of AUS$480m (拢267m).
Kier said the sale, which is expected to complete next year, would be settled in cash. Net proceeds 鈥� expected to be in the region of 拢15m 鈥� will go towards paying down debt.
When it published its results for 2017/18 in September Kier said it was introducing a number of initiatives designed to reduce its debt mountain.
The firm had said its average net debt was in the region of 拢375m and hoped to cut this to 拢250m inside three years.
Kier also came under fire for the length of time it took to pay many of its suppliers.
KHSA reported a pre-tax profit for the year to the end of June 2018 of 拢7m.
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