Mouchel agrees bank deal as bidders circle

Grant Prior 13 years ago
Share

Mouchel has agreed a £170m refinancing deal with its banks as the consultant fights off a host of takeover bidders led by Costain.

Balfour Beatty, Carillion and Capita are also believed to be in the hunt for Mouchel who confirmed the refinancing deal to the City this morning.

Mouchel is looking to sell-off non core businesses to raise cash for a £30m staged payment due in March 2012 which is part of the refinancing agrement.

If the consultant misses the payment, interest rates on the rest of the funding package will shoot-up.

Chief executive Richard Cuthbert said: “This is an important turning point for Mouchel. It provides the Group with stability and ensures that we can continue to compete successfully in our chosen markets.”

Advisers have been appointed for the non-core sales and Mouchel is hoping to claw back £20m in disputed payments across its Middle East operations.

Costain has already made three public bids for the whole of Mouchel valuing the consultant at £175m.

The City expects a bidding war to continue among potential suitors but Balfour and Carillion might look to snap-up operating divisions rather than the whole firm.

The statement added: “Costain’s interest has been made public, and shareholders will be aware that we rejected its early approaches because they significantly undervalued the Company and its prospects.

“We are actively reviewing all of the approaches that we have received and our other options.  Our priority remains enhancing shareholder value and we continue to urge shareholders to take no action.”

Latest news

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
36 mins ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
57 mins ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
16 hours ago

Costain signs site labour supply deal with four firms

Contract to use only a quartet of providers for temporary labour supply
15 mins ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
15 hours ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
17 hours ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
8 mins ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
24 hours ago

Wates-owned SES restructure delivers record profit and revenue

Building services contractor revenue soars to almost £300m
23 hours ago

25 groundworks firms win £100m Places for People deal

M&J Evans, Carmac and Churngold Construction feature in housing association's line-up
24 hours ago

Energy efficiency firms angry at lack of CITB support

SME contractors funding bid "does not meet the current criteria for supporting productivity or EDI"
24 hours ago

£400m South Cambridge science park approved

Outline approval allows former sewage treatment works to be demolished
24 hours ago

McLaren gets green light for 45-storey Leeds tower

Landmark Wellington Square scheme will see 464 flats built with 360,000 sq ft of offices
4 days ago

Heavy rain causes 1.9% construction output fall

Hopes remain undampened of a resi-led recovery this summer
4 days ago

Taziker restruture to return to profitability after £1.2m loss

Founders bought the business back from private equity after last year's loss
4 days ago

£220m London wharf homes scheme approved

285 homes to be built beside protected Albert and Swedish Wharves in Wandsworth
4 days ago

Major project veteran named civils director for Sizewell C

David Speight previously worked on Hinkley, Heathrow and HS2 client teams
4 days ago

Morgan Sindall lands £19m Milton Keynes hospital job

Crane lifts to be carefully co-ordinated to ensure air ambulance remains active
5 days ago

Clancy bolsters civils leadership team

Daniel Tonkin and Simon Hyams join as operation directors of water and infrastructure
5 days ago

Balfour names new project boss for HS2’s super-hub station

Steve O’Sullivan replaces Nigel Russell who was promoted to CEO of Balfour's HS2 ops
5 days ago

Buckingham Group supply chain hit doubles to £256m

Total owed to unsecured creditors soars as surety providers finalise claims
5 days ago

Builders demand an end to police plant bans

Call to suspend all embargoes on moving mobile cranes and large site kit
5 days ago

Green light for £65m Blackpool multiversity campus

Education campus of 350,000 sq ft will be delivered in phases
5 days ago

Vinci signs £138m Sheffield steel forge expansion deal

Sheffield Forgemasters signs landmark contract after two years of pre-construction works
6 days ago

McAlpine hires HS2 programme boss to head defence arm

Armed forces logistics expert Mike Hickson takes role as MD of defence
6 days ago

£200m carbon capture plan for Deeside site

Energy from waste operator enfinium looking to invest in North Wales plant
5 days ago

McAleer & Rushe promotes five staff to contracts directors

Design and build contractor targets £500m revenue next year
6 days ago

Consultant quartet win Government estate upgrade deal

Government Property Agency selects Arcadis, Tetra Tech, AtkinsRéalis and McBains
6 days ago

Resi towers pioneer to transform Liverpool site

Beetham founder Hugh Frost to help develop 1,200 new homes
7 days ago

Construction Manager of the Year crowned

Galliford Try's Barry Kingscote wins coveted prize: Full list of winners
6 days ago

Contractor services