Australian property and finance group Lend Lease has bought the UK construction firm Bovis for £285m.
Bovis’s owner shipping and property group P&O said negotiations took place last week following an approach by Lend Lease. P&O said it had realised £315m from the sale, including £30m cash extracted immediately beforehand.
P&O had announced in March it would float Bovis as part of a restructuring which would see the parent group focus on cruises, ferries and ports. In September, the group said a flotation would go ahead this month.
Lord Sterling, chairman of P&O, said: “This transaction is strongly in our shareholders’ interests. As a trade buyer, the clear synergy with Lend Lease’s existing business meant that they were able to offer a good price.”
Sir Frank Lample, chairman of Bovis said: “Although a flotation would have offered Bovis an exciting future, I have no doubt that becoming part of Lend Lease will be better for us.”
He added Bovis and Lend Lease had developed an excellent relationship over the past four years and had worked together on Bluewater, the shopping centre in Kent.
Bovis is currently working for Lend Lease on several major projects in Poland, Spain and the UK.
The sale – part of P&O’s £2bn disposal programme – follows the sale last week of the exhibition and conference hall venues Earls Court and Olympia for £183m.
P&O also sold its Australian services business last week for Aus$300m (£120m). Earlier this year, the group sold its Laing Property Corporation of Canada for £206m.
P&O has now completed around £1bn of deals and has around £1bn left to sell – mainly in property development and investments.
