Support services group Amey is recommending an £81m takeover by Spanish construction company Grupo Ferrovial to shareholders.
Grupo Ferrovial is offering 32p per share for Amey.
The proposal, which has been backed by Amey’s board, will give Ferrovial a foothold in the UK through both private and public sector work.
The move comes after a painful year for Amey involving accounting problems, two profit warnings and bottom-line losses of £129.5m.
It disposed of a number of operations and is now primarily focused on two divisions covering transport and business services.
Amey effectively put itself up for sale in November and talked to a number of parties before backing the approach from Ferrovial.
The Spanish construction and services company’s UK presence currently includes joint ownership of Bristol International Airport.
Chief executive Joaquin Ayuso said Amey would form a “significant part” of the enlarged company, adding that it offered access to a portfolio of more stable activities under long-term contracts.
He added: “With this acquisition, Ferrovial will obtain a strong market position in the UK, a key European market with the most experience of outsourcing services.”
As part of Amey’s portfolio it manages and maintains 25% of English and half of Scottish trunk roads and holds a 12% share of the rail maintenance market.
While it has sold its share of the Tube Lines consortium taking over maintenance and infrastructure work on three London Underground lines, Ferrovial confirmed Amey would take up an option to buy back into the venture.
An earlier review of the business had seen Amey offload poorly performing activities and sell its portfolio of PFI investments to Laing.
“This offer represents the best available outcome for shareholders and will be good for the future development of Amey,” said chairman Sir Ian Robinson.
References: EGi News 16/04/03
