Costain Group PLC
("Costain" or the "Company")
Greater Manchester Waste contract
Further to our announcement on 2 May 2017, Costain, the engineering solutions provider, announces that, subject to the fulfilment of certain conditions, a consensual termination of the Greater Manchester waste management PFI project (the "Project") has been agreed.
As a result, Costain has received an instruction under its sub-contract with Viridor Laing (Greater Manchester) Limited ("Viridor Laing") to fully demobilise all of its remaining activities relating to the Project. This demobilisation is expected to be complete by 29 September 2017.
The settlement agreement entered into by Costain, Viridor Laing and others on 23 August 2017 also includes the full and final settlement of all of Costain's obligations under the Project. The financial impact for Costain of this settlement is in line with the provisions we have previously taken for the Project.
Completion of the consensual termination is expected to take place on 29 September 2017 and is conditional upon: (i) completion of the transfer of Viridor Laing into Authority ownership; (ii) escrow arrangements being executed by all the parties; and (iii) approval of the terms of the consensual termination by the lenders to the Project.
This announcement contains inside information.
The person who arranged for the release of this announcement on behalf of Costain was Tracey Wood, Legal Director and Company Secretary.
24 August 2017
Enquiries: Costain |
Tel: 01628 842 444 |
Andrew Wyllie CBE, Chief Executive |
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Tony Bickerstaff, Finance Director |
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Catherine Warbrick, Investor Relations Director |
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Sara Lipscombe, Group Communications Director |
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Instinctif Partners |
Tel: 020 7457 2020 |
Mark Garraway |
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James Gray |
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