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Interserve confirms possible RMD handover

Interserve has announced that it is considering handing over RMD Kwikform to its lenders to pay towards its debts.

In an announcement to the stock market this morning, Interserve said that it had agreed with its lenders that they will take some equity from the business, which could include RMD Kwikform.

The Interserve Board’s announcement stated it “continues to be in constructive discussions with its lenders, who are fully supportive of Interserve’s business plan and management team”.

“Consideration is also being given to whether it would be in stakeholders’ interests for the board to agree to lender requests for RMDK to be placed in a separate holding company owned by the lenders.”

Interserve CEO Debbie White said: “This progress on the Deleveraging Plan is excellent news for all our employees, customers and suppliers. It will provide us with a strong balance sheet and enable us to move forward with confidence and the ability to improve our business and deliver our long term strategy.”

Interserve looked at selling RMD two years ago but decided to retain ownership of it after an eight month strategic review, arguing that “the structural drivers for global infrastructure remain strong”.

The precise value of RMD Kwikform in any spin-off to the company’s lenders is unclear, although analysts have valued it at between £250M and £300M. Interserve has about £600M of debt.

In October, RMD Kwikform announced that it had launched a new ground shoring division in Hong Kong in a bid to offer the market a “top to bottom” solution to complement its existing above ground solutions.

 

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