The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

£81m Off – Mitie and Interserve Renegotiate Terms of Sale

£81m Off – Mitie and Interserve Renegotiate Terms of Sale
04 November 2020
 

The terms of the sale of the merger of Interserve’s Support Services division with Mitie have been renegotiated, with the transaction now valued at £190m rather than the previously stated £271m.

Mitie announced on 25 June 2020 that it had signed a sale and purchase agreement to acquire Interserve's Facility Management business on a cash-free and debt-free basis for a total consideration of approximately £271m, comprising £120m in cash and approximately 358m shares in Mitie.

However, Mitie today has announced that it has signed an agreement to amend the terms of the sale so that it will acquire Interserve Facilities Management on a cash-free and debt-free basis for consideration of £120m in cash and approximately 248m shares in Mitie (representing approximately 17.5 per cent of Enlarged Group share capital), valuing the transaction at approximately £190m based on Friday’s closing share price. 

 

Both Companies Traded “Better Than Expected” During Coronavirus

 

Phil Bentley, Chief Executive of Mitie, commented: “Reassuringly both Mitie and Interserve Facilities Management have traded better than expected during the COVID crisis. 

“However, Mitie, in particular, has been successful at renewing strategic contracts and winning new business during this period. Recognising this momentum, we have renegotiated the terms of the Interserve Facilities Management transaction, reducing the vendor’s consideration shares by 31 per cent (110 million shares) to 248m shares (17.5 per cent of the Enlarged Group), valuing the current consideration at £190m.

“Mitie’s existing shareholders will therefore hold a greater proportion (82.5 per cent) of the Enlarged Group and enjoy a greater share of the benefits of the transaction.”

Picture: a photograph of some city skyscrapers

Article written by Ella Tansley | Published 04 November 2020

Share



Related Articles

Mitie Refutes Claims of Lack of Cooperation Amid Strike Action in Carlisle 

As over 70 cleaners, porters and other support staff at Carlisle’s Cumberland Infirmary prepare to strike over a decade-long pay dispute, Mitie says it has never...

 Read Full Article
Mitie Attains Contracts Worth Over £770m in Last Three Months

In its Q3 trading update, Mitie has revealed an organic revenue of £573.9 million, 6.7 per cent ahead of the same period last year. The firm also said it had won...

 Read Full Article
Mitie Completes its Acquisition of Interserve

Today marks Mitie’s acquisition of Interserve's Facility Management business. The Competition and Markets Authority cleared the deal to proceed in...

 Read Full Article
Mitie's Acquisition of Interserve Cleared to go Ahead

The Competition and Markets Authority has cleared Mitie's acquisition of Interserve to proceed, subject to the approval of Mitie's...

 Read Full Article
CMA Launches Investigation Into Interserve and Mitie Deal

The Competition and Markets Authority is investigating whether the deal between Interserve Support Services and Mitie might reduce competition in the FM sector. The...

 Read Full Article
Mitie Appoints Integration Director to Support Interserve Merger

Mitie has today announced that Karen Thomas-Bland will take up a newly created role as Programme Integration Director for Mitie’s merger with Interserve’s...

 Read Full Article
Funds from Rights Issue Expected To Support Interserve Acquisition, says Mitie

The acquisition of Interserve’s Facilities Management business is conditional on the approval of Mitie’s shareholders, and expected to be completed in or...

 Read Full Article
Mitie Sells Document Management Business

Mitie has sold its document management business to Swiss Post Solutions for £40 million. Document management services will still remain part of...

 Read Full Article
Mitie Acquires DAEL Ventures UK for £15 Million

Mitie has acquired DAEL Ventures UK, together with its subsidiaries DAEL Telecom, JB Towers and JISTICS. Mitie already provides maintenance and engineering services...

 Read Full Article
Mitie Reports 2021 Revenue Rise

FM company Mitie has forecast a strong 2022, despite low annual profits and the loss of public sector contracts in the last year. Group revenue increased by 18 per...

 Read Full Article