Carillion has announced it is selling its UK healthcare facilities management business to public services provider, Serco.

The deal is worth £50.1 million, subject to a limited working capital adjustment.

In a trading update, Carillion said: "Carillion has agreed to give Serco a period of exclusivity to provide the parties with time to finalise a business purchase agreement, which Carillion and Serco are aiming to sign in the next few weeks.

"The transfers of contracts pursuant to this disposal are each subject to receipt of third party consents, and, if required, shareholder approval.  It is intended for the contract transfers to take place on a phased basis, with the aim of receiving the bulk of the proceeds during the first half of 2018."


Carillion added it intends to dispose of the remaining contracts in its UK healthcare facilities management portfolio during next year. It hopes to raise more than £300m from further disposals by the end of 2018.

Elsewhere, the company has signed a two new loan facilities totalling £140 million in addition to £140m of credit facilities agreed with five of the Group's core lends in September.

"In addition, the Group has agreed new committed bonding facilities, together with the deferral of certain pension contributions and the deferral of repayment of private placement notes due in November 2017 and September 2018", the Group said.

"These deferrals will be until the earlier of five business days following, the repayment of the new committed facilities, and 01 January 2019."

Carillion is also continuing to pursue the disposal of its Canadian businesses, however it is evaluating whether to hold on to some of those businesses.

Other trading highlights include a number of major contract wins, including a £200m joint venture (JV) deal with Gigaclear to build a new broadband network in Devon and Somerset, as well as a £71m contract to design and build Phase 1 of the University of Manchester's Fallowfield Student Residences project.

(LM/MH)