Through UK services subsidiary, Amey, it has acquired an additional 33% and now controls 66% of the concession company
This move consolidates the company´s strategy of focusing on the privately-financed development of infrastructure and services for government
Amey, a UK services company controlled by Ferrovial, has reached an agreement with Jarvis to buy the latter´s 33% stake in Tube Lines, a company which holds a 30-year concession to maintain and renovate three lines of London Underground.
The acquisition represents an investment of 142 million pounds (206 million euro) and will take place once the standard conditions for this type of operation have been met, potentially by the end of January 2005.
With this operation, Amey will strengthen its position in Tube Lines as it will control 66% of the consortium. Amey will also take complete control of managing the contract to provide technical assistance in operating and maintaining the lines managed by Tube Lines; up to now, it has shared this activity 50:50 with Jarvis.
The move enables Ferrovial to consolidate its strategy of enhancing the area of privately-developed and financed infrastructure and services for public administrations, under the PFI (Private Finance Initiatives) and PPP (Public Private Partnership) formulae. The deal will have an immediate impact on the company´s accounts, as it will provide Ferrovial with additional revenues totalling 260 million pounds (377 million euro) in 2005.
Maintaining 335 km of track and 100 stations
Tube Lines has a 30-year contract to manage the refurbishment and maintenance of London Underground´s Jubilee, Northern and Piccadilly lines, representing a total projected investment 2.2 billion pounds. Tube Lines manages 100 stations and 335 km of track, which carry 246 trains and 1.75 million passengers every day. The company has 2,590 employees.
One of the leading services companies in the UK
Amey is one of the leading services companies in the UK, focusing on comprehensive infrastructure maintenance (highways, railways and underground rail) and facility management. It is also one of the largest and most experienced players in the field of private sector development and financing of infrastructure and services for government under the PFI and PPP formulae.
Amey attained 1,068 million euro in revenues through September 2004. Ferrovial´s services division, which includes Amey, will attain over 2 billion euro in revenues in 2004.