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PFI shares sale for Kier

Kier has announced the sale of its 50 per cent PFI shares in the West Berkshire Hospital project and Hinchingbrooke Hospital project for £8.1 million.

On 28 November, the contractor sold its investment in the West Berkshire Hospital project to the Innisfree PFI Continuation Fund for £5m and it transferred its investment in the Hinchingbrooke Hospital project to the Kier Group Pension Scheme for £3.1m.

Kier constructed both of the hospitals and has also been providing the facilities management services at Hinchingbrooke Hospital, which it is contracted to continue to do for a further 27 years.

The aggregate consideration for the disposals gives rise to a profit of £6.8 million, which will be disclosed in Kier’s financial statements as at, and for the year ending, 30 June 2012, and represents a valuation discount rate on the base case cash flows of approximately 7 per cent.