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Friday 25th September 2009
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updated 1.53pm, Tuesday 5th May 2020
25 September 2009
VT Group is to sell its last shares in its shipbuilding joint venture to focus on support services, the company said.
VT has signed an agreement with its partner BAE Systems for the disposal of its 45 per cent shareholding in BVT Surface Fleet Limited, the shipbuilding and naval support joint venture, for a cash consideration of £346m.
"The disposal of its shareholding in BVT will result in VT becoming a pure support services business and the board of directors of VT believe that this new focus will provide for a more stable business with greater long term visibility and better prospects for growth.
"Furthermore, the proceeds from the transaction will provide greater financial flexibility to take advantage of opportunities, both organic and acquisitive, to grow VT's support services offering to existing customers and add new capabilities."
VT management will seek approval of the transaction by VT's shareholders at a general meeting next month.
BVT is a major UK provider of surface warships and through-life support working closely with the Ministry of Defence and also exports warships and naval surface ship support services. It employs more than 7,000 people in operations in Glasgow, Portsmouth and Filton, near Bristol.
BVT generated revenues of £439.5m and a loss before tax of £19.7m for the nine months ended 31 March, 2009.
The deal comes after VT Group announced earlier this month that its education business had signed a multi-million pound contract to deliver integrated FM and information and communication technology at Northbrook School. The Church of England secondary school for 600 students and staff is the third new school to be built under the Building Schools for the Future (BSF) programme in the London Borough of Lewisham and is due to open in January 2011.
VT's FM team will manage the 8458m² of school buildings as well as their grounds over 25 years. The team will also manage the first two schools to be built under BSF, Sedgehill and Catford.
VT Group is to sell its last shares in its shipbuilding joint venture to focus on support services, the company said.
VT has signed an agreement with its partner BAE Systems for the disposal of its 45 per cent shareholding in BVT Surface Fleet Limited, the shipbuilding and naval support joint venture, for a cash consideration of £346m.
"The disposal of its shareholding in BVT will result in VT becoming a pure support services business and the board of directors of VT believe that this new focus will provide for a more stable business with greater long term visibility and better prospects for growth.
"Furthermore, the proceeds from the transaction will provide greater financial flexibility to take advantage of opportunities, both organic and acquisitive, to grow VT's support services offering to existing customers and add new capabilities."
VT management will seek approval of the transaction by VT's shareholders at a general meeting next month.
BVT is a major UK provider of surface warships and through-life support working closely with the Ministry of Defence and also exports warships and naval surface ship support services. It employs more than 7,000 people in operations in Glasgow, Portsmouth and Filton, near Bristol.
BVT generated revenues of £439.5m and a loss before tax of £19.7m for the nine months ended 31 March, 2009.
The deal comes after VT Group announced earlier this month that its education business had signed a multi-million pound contract to deliver integrated FM and information and communication technology at Northbrook School. The Church of England secondary school for 600 students and staff is the third new school to be built under the Building Schools for the Future (BSF) programme in the London Borough of Lewisham and is due to open in January 2011.
VT's FM team will manage the 8458m² of school buildings as well as their grounds over 25 years. The team will also manage the first two schools to be built under BSF, Sedgehill and Catford.