By Joe Hoppe
Capita PLC said Monday that it has sold its 51% stake in its AXELOS Ltd. joint venture to PeopleCert International Ltd. for a net cash receipt of 183.6 million pounds ($253.4 million).
The London-listed outsourcer said that the deal, which values the joint venture with the U.K. government's Cabinet Office at GBP380 million, will see it receive net cash proceeds of GBP172.5 million on completion, along with a cash dividend of GBP11.1 million.
The company said that the transaction is conditional on shareholder approval, consents and waivers from creditors and clearance by the Cyprus Commission for the Protection of Competition, all expected by July.
The disposal will provide additional liquidity to strengthen Capita's balance sheet, meet upcoming debt maturities and support the continued implementation of its transformation plan, the company said.
In 2020, AXELOS reported gross assets of GBP115.7 million and pretax profit of GBP24.3 million.
Capita said it continues to make good progress with planned disposals and is on track to realize combined proceeds of at least GBP200 million this year.
Barclays Bank PLC is acting as sole financial advisor to AXELOS, and Goldman Sachs International is sponsor to Capita.
Write to Joe Hoppe at firstname.lastname@example.org
(END) Dow Jones Newswires