Laing has specialized in public-private partnerships in which it builds roads, schools and hospitals. In these specialist deals, companies typically undertake the design, building, finance and operation of public projects and get paid, for example, over 20 or 30 years.
William Forrester, Laing's chairman, says the price reflects the quality of Laing's portfolio. "Combining Laing's operational skill base with Henderson Equity Partners' financial capacity should help to ensure Laing's continued development in the UK and underpin its expansion into overseas markets," he says.
"Henderson Equity Partners' considerable experience in global PFI/PPP markets combined with the specialist infrastructure funds that it manages place Laing in a stronger position to fund the significant capital investment required to realize its growth potential," adds Paul Woodbury, a partner at Henderson.
Forrester says the recommended deal with Henderson would help the group to deliver a planned increase in bid activity in Europe and North America that it outlined at its interim results last month. "To be successful on bidding we need to be sharp on everything…not just construction prices, but also accessing competitive capital," he explains. "As a public company our access to capital is through debt or from shareholders, both of which are expensive."
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