Sell-offs continue at Jarvis
THE clearout of businesses at troubled rail engineer and public sector building group Jarvis continued today, as it announced it is close to selling its private finance initiative (PFI) bidding operations to French construction giant Vinci.
Ahead of what is likely to be a stormy annual meeting tomorrow when shareholders will attack the company after a string of 'rewards-for-failure' pay-offs to executives, Jarvis announced that it has received an offer for its bid teams involved in landing four current projects.
Jarvis is expected to eventually get up to £9m from Vinci, which is in final negotiations to acquire Jarvis's PFI construction contracts on schools in Norfolk and Manchester, an NHS project in Northern Ireland and the Cork School of Music.
The deal sees Vinci taking a further step into the UK market. It is already working on several schools PFI projects, and its Norwest Holst subsidiary has also landed contracts with Kent and Swindon police.
A giant global construction and facilities management group, Vinci's construction arm is currently tunnelling under the Thames to build the high-speed Channel rail link through to St Pancras.
Jarvis aims to exit its schools, universities and health accommodation businesses to concentrate on its original rail and road engineering operations.
Chairman Steve Norris is expecting a rough ride at tomorrow's annual meeting over massive payouts to his predecessor Paris Moayedi and recently departed chief executive Kevin Hyde.
