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Costain Group Sells Alcaidesa Holding to Spanish Real Estate Fund
Wednesday 11 December 2019

11 December 2019 - UK-based construction and engineering company Costain Group plc's (LSE: COST) Spain-based Costain Alcaidesa Ltd. Business has agreed the sale of Alcaidesa Holding S.A.U to Spanish real estate investment fund Millenium Hotels Real Estate I Socimi S.A. for total cash consideration of EUR 15.2m (USD 16.93m), the company said.

The disposal, which is to be effected by way of share sale, is subject to the satisfaction of certain conditions to completion which are expected to be satisfied shortly.

Completion of the disposal is therefore expected to take place this week.
 
Alcaidesa Holding S.A.U and its wholly owned subsidiary, Alcaidesa Golf S.L.U, own and operate two golf courses, land and a club house in Cadiz, Spain.
 
In addition, Costain is also seeking a potential purchaser of its 624-berth Marina Concession.
 
The Disposal and the potential disposal of the Marina Concession is part of Costain's strategy to divest its non-core business assets in Spain.
 
The Disposal, combined with the potential sale of the Marina Concession, will result in an aggregate loss on disposal and fair value asset impairment of GBP 8.9m.

This will be included within the group's 2019 financial statements as a one-off non-cash charge.
 
Prior to the disposal, the group has reorganised the assets held by its non-core business in Spain by way of an intra-group reorganisation.

Under the Reorganisation, Costain Alcaidesa acquired the entire issued share capital of Alcaidesa Servicios, S.A. from Alcaidesa Holding, S.A.U. Alcaidesa Servicios S.A. operates a marina in Southern Andalusia, close to the Gibraltar border.
 
As at 31 December 2018, the group's carrying value of the gross assets of Alcaidesa Holding S.A.U and Alcaidesa Golf S.L.U amounted to EUR 23.2m (EUR 20.8m) and the businesses recorded a loss before tax of EUR 0.6 m (GBP 0.5m) for the 12 months to 31 December 2018.

Costain will use the proceeds of the disposal for general working capital purposes.

The loss on the disposal is GBP 4m and the fair value asset impairment of the Marina Concession is GBP 4.9m (based on the estimated potential sale value of GBP 5.9m).
Details
Date Published: 11/12/2019
Target: Alcaidesa Holding S.A.U.
Country: USA
Deal Size: 16.93m (USD)
Sector: Construction/Real Estate
Type: Divestment
Financing: Cash
Status: Agreed
Vendor: Costain Alcaidesa Ltd.
Buyer: Millenium Hotels Real Estate I Socimi S.A.
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