Capita Sells 51% Stake in AXELOS JV for Net Cash of GBP183.6 Million
June 21 2021 - 2:52AM
Dow Jones News
By Joe Hoppe
Capita PLC said Monday that it has sold its 51% stake in its
AXELOS Ltd. joint venture to PeopleCert International Ltd. for a
net cash receipt of 183.6 million pounds ($253.4 million).
The London-listed outsourcer said that the deal, which values
the joint venture with the U.K. government's Cabinet Office at
GBP380 million, will see it receive net cash proceeds of GBP172.5
million on completion, along with a cash dividend of GBP11.1
million.
The company said that the transaction is conditional on
shareholder approval, consents and waivers from creditors and
clearance by the Cyprus Commission for the Protection of
Competition, all expected by July.
The disposal will provide additional liquidity to strengthen
Capita's balance sheet, meet upcoming debt maturities and support
the continued implementation of its transformation plan, the
company said.
In 2020, AXELOS reported gross assets of GBP115.7 million and
pretax profit of GBP24.3 million.
Capita said it continues to make good progress with planned
disposals and is on track to realize combined proceeds of at least
GBP200 million this year.
Barclays Bank PLC is acting as sole financial advisor to AXELOS,
and Goldman Sachs International is sponsor to Capita.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
June 21, 2021 02:37 ET (06:37 GMT)
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